Building fab in US, 3-5 times costly , TSMC said

According to Taiwan’s Economic Daily, TSMC only announced its intention to build an advanced 12-inch fab in the United States in mid-May, and at the end of May it called for a preliminary exchange of views on supply chain manufacturers to demonstrate high efficiency and execution. The industry pointed out that, in general, the construction of a fab, the plant construction project planning first, so the first wave of TSMC consultation supply chain, will fall in the dust-free room and mechanical and electrical engineering manufacturers.

Supply chains point out that the cost of building plants in the U.S. is much higher than in Asia, and is estimated to be at least three to five times as high as in Taiwan. At the same time, all construction methods, safety regulations and other regulations are different, and the related laws in United States are too many, is bound to hire local legal personnel to assist. Moreover, most of The Taiwan suppliers in China can only do a good job of planning and technical guidance, the actual construction, operators must be carried out by local personnel, in order to comply with the United States in the local trade union regulations.

TSMC wants U.S. funding to make up for the cost difference between producing semiconductors in the U.S. and producing them in Taiwan, Bloomberg reported.

“Subsidies will be a key factor in TSMC’s decision to set up a fab in the United States,” TSMC Chairman Liu Deyin was quoted as saying at the company’s recent shareholder stake. Our request is for the state and federal governments to work together to close the manufacturing cost gap between the United States and Taiwan. “

The Arizona Department of Commerce declined to release documents related to TSMC’s construction plant, and the deal remains confidential, Wccftech reported.

In response to Wccftech’s request, a spokesman for the Arizona Department of Commerce said that any documents provided by Arizona related to the TSMC plant could not be made public until the project was completed.