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

This figure, given by 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 wrong judgments?

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

Many factors affect TSMC's chip manufacturing costs

While building the US factory is significantly more expensive than the Taiwan factory, this is due to the fact that Fab 21 is TSMC's first overseas factory in decades, according to TechInsights . Building on a completely new site with less experienced workers 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 that local factors do not have much of an impact on costs.

The 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 percent 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 expenses. 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 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 little more complicated than those made in Taiwan. However, analysts say this is unlikely to significantly increase costs, although TSMC reportedly charges 30% more for US-made chips.

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