this post was submitted on 25 Mar 2025
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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.

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[–] CmdrShepard42@lemm.ee 9 points 11 months ago (1 children)

High expenses stem mainly from building the first overseas fab in decades with unskilled labor, not operational costs.

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.

[–] HobbitFoot@thelemmy.club 8 points 11 months ago

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.

[–] xmunk@sh.itjust.works 6 points 11 months ago (1 children)

Imagine how much cheaper it'd be if those factories were in Langley, Guelph, or Hamilton.

[–] Tm12@lemmy.ca 2 points 11 months ago (1 children)

The land cost by itself in the Fraser Valley would be prohibitive for Langley, I would think.

[–] xmunk@sh.itjust.works 4 points 11 months ago

Probably, but don't tell them that. Also, I was originally going to suggest Surrey but fuck even that's nearing Burnaby pricing now.

Maybe that could try and build it somewhere in the five square meters of flat land we have to offer in New West? New West Station is already themed for techy dystopianism.

[–] A_A@lemmy.world 5 points 11 months ago* (last edited 11 months ago) (1 children)

it's the making of high technology chips out of the wafer that's expensive rather than the wafers themselves.

(...) "It costs TSMC less than 10% more to process a 300mm wafer in Arizona than the same wafer made in Taiwan,"

Okay, it's just the title that's stupid.

[–] Vash63@lemmy.world 2 points 11 months ago (1 children)

Uh... Obviously? When people talk about wafers coming out of a foundry they're talking about processed ones...

[–] A_A@lemmy.world 4 points 11 months ago

At one point in my job we were working with unprocessed ones. Different people will have different perspectives.