Summary
TechInsights reports that producing wafers at TSMC’s Arizona fab costs only 10% more than in Taiwan, contradicting claims of excessive U.S. production costs.
High expenses stem mainly from building the first overseas fab in decades with unskilled labor, not operational costs.
Equipment costs, which dominate wafer expenses, are consistent across locations. Labor costs, though higher in the U.S., account for less than 2% of total costs due to automation.
Logistics are slightly more complex but not significantly costlier. TSMC reportedly charges a 30% premium for U.S.-made chips.
Uhh what? Intel is right next door and has constant construction projects. I find it very hard to believe that “unskilled labor” is all they could find in the area. There are entire local industries that exist solely to build and support these fabs.
I know there was a major disagreement between the local skilled labor and TSMC because the locals used a different, but still as effective, method of joining pipes. TSMC wanted to use Taiwanese labor instead who fitted pipes the way TSMC was used to.