Are TSMC chips made in the US more expensive than in Taiwan?

This figure, according to analysts at TechInsights, is much lower than previous predictions. Previously, TSMC founder Morris Chang said that chip production in the US was not economically feasible due to the high cost of building a factory in Arizona. So what is the reason for the above misjudgments?

TSMC chip manufacturing costs in the US are only about 10% higher than in Taiwan

Many factors affect TSMC's chip manufacturing costs

According to TechInsights , while building a factory in the US is significantly more expensive than building one in Taiwan, this is due to the fact that Fab 21 is TSMC's first overseas factory in decades. Building on a completely new site with a workforce that has little experience is part of the cost increase.

One factor that determines the cost of semiconductor manufacturing is the price of equipment, which accounts for more than two-thirds of the total cost. The problem is that equipment from manufacturers such as ASML, Applied Materials, KLA, Lam Research and Tokyo Electron is similar across countries, meaning local factors don’t have much of an impact on costs.

Confusion continues over labor costs. While U.S. wages are about three times higher than in Taiwan, TechInsights says the high level of automation in modern silicon wafer factories means labor costs account for less than 2% of total costs.

Based on these findings, the difference in operating costs between a factory in Arizona and Taiwan would be small, despite significant differences in wages and other costs. This suggests that automation and equipment costs play a much more important role than labor costs in determining the total cost of chip manufacturing.

Because of semiconductor ambitions, the US heavily subsidizes TSMC and Samsung

It’s worth noting that the wafers TSMC currently processes at Fab 21 are sent back to Taiwan for slicing, testing, and packaging. Some of the chips are then sent to China or other countries for installation in terminals, while others are returned to the US. As a result, the logistics of US-made wafers are a bit more complicated than those made in Taiwan. However, analysts say this is unlikely to significantly increase costs, although TSMC reportedly charges a 30% premium for US-made chips.

Source: https://thanhnien.vn/chip-tsmc-san-xuat-tai-my-lieu-co-dat-hon-tai-dai-loan-185250327111500979.htm