TSMC News - US and Europe
upstart writes:
The chipmaker is looking for $15 billion in subsidies from the US government:
Setting up a chip factory in the US is an expensive endeavor, especially when compared to doing the same in Asia. Still, companies like TSMC are investing billions into doing just that, wooed by government subsidies and the idea of achieving a geographically diverse supply chain that is less prone to disruptions. As a result, chips made by the Taiwanese giant in the US could end up 30 percent more expensive than those made in its home country.
Back in December, TSMC announced it would pour no less than $40 billion into building two advanced chip factories in Arizona. In other words, the world's biggest chipmaker made the largest direct foreign investment in Arizona history and one of the largest in US history. When they become operational, the fabs will employ thousands of people and produce around 600,000 wafers per year.
The move represents a significant shift in mindset for TSMC leadership, which has traditionally been reluctant to establish chip manufacturing facilities in the US. One reason has to do with Taiwan's policy of keeping its most advanced technologies locally even as it builds external manufacturing arms for a more resilient global supply chain.
Another reason has to do with cost - setting up and operating a factory on American soil is up to 50 percent more expensive than in Taiwan. Then you'd need to source materials like rare earth metals and semiconductor-grade neon as well as a steady supply of water to keep the facility running at full capacity. And last but not least, you need a lot of skilled (and cheap) labor, something that is easier to find in Asia as opposed to North America and even Europe.
Naturally, this means TSMC will have extra costs in the US that will translate into higher prices for wafers made in Arizona as opposed to those made in Taiwan. Some industry insiders estimate that chips made in America on N5 and N4 process nodes will cost up to 30 percent more than those made in the Asian country.
It's not just the US that's more expensive than Taiwan for chip manufacturers, either. Chips made on older, more mature process technologies like N28, N22, N16, and N12 at TSMC's Japanese arm in Kumamoto are also 10-15 percent more expensive to make than similar chips made in the company's home country.
Just like the US, Japan is looking o reignite its once-dominant semiconductor industry. Last year, we learned the two countries kicked off a joint research and development arm for 2nm-class process technologies and beyond.
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