TSMC Says Growing Domestic US Chip Production Is Wasteful And Expensive

TSMC Says Growing Domestic US Chip Production Is Wasteful And Expensive

According to an article I take out The RegisterTSMC founder Morris Chang is unhappy with US efforts to increase its domestic chip production. Morris Chang said the US attempt to increase its domestic chip production is futile and costly. The reason behind his comment is that he believes the US lacks the talent to work in factories, or possibly the willingness to work three shifts to keep factories running 24/7. , unlike the Taiwanese.

Furthermore, he claims that the US cannot compete in terms of costs, he says that it is 50 percent more expensive to make chips in the US compared to Taiwan.

“The United States has a ready supply of talent in design, is the best of the world, said Morris Chang. Taiwan has very little design talent and TSMC has absolutely none. But to develop and grow a successful chipmaking industry, the US will need to address its own severe manufacturing talent shortage.

Manufacturing costs in the US are simply prohibitive, and TSMC has the data to prove it thanks to 25 years of manufacturing at its Oregon plant. The plant is profitable, but expansion plans have almost been abandoned. We were extremely naive to expect comparable costs, but making chips in the US is 50 percent more expensive than in Taiwan.”

The million dollar question is why? TSMC is installing a factory in that country… And the answer was this:

“We did it at the behest of the US government and TSMC felt we should do it, Chang said. Still, he believes all the billions in subsidies the US is setting aside to increase semiconductor assembly in the country will still fall far short of the amount needed to boost local chipmakers.

US production will definitely increase, he said, at the least a little. There will be a high increase in the cost per unit and will be difficult for EE. UU. compete internationally. In conclusion, he said that if eventually there is no conflict between China and Taiwan, basically the United States will have invested a lot of resources and money that will not be allowed to compete him in the market, while if there really is a war, America will have to worry many more things than making chips “.