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TSMC to Charge More For Chips Made In the US
TSMC will reportedly charge more for chips made at its Arizona plant, as well as any locations outside of Taiwan.
TSMC is investing billions to build a plant in Arizona capable of manufacturing its advanced chips. The company has received funding from the US CHIPS Act, part of the efforts by the US to become semiconductor independent. Just because chips are made in Arizona, however, doesn’t mean the company will charge the same.
“If a customer requests to be in a certain geographical area, the customer needs to share the incremental cost,” TSMC CEO CC Wei said on an earnings call, according to Engadget. “In today’s fragmented globalization environment, cost will be higher for everyone, including TSMC, our customers and our competitors.”
The news is not entirely surprising. TSMC has spent decades building the necessary infrastructure in Taiwan to support its chip manufacturing. In the meantime, the US spent those same decades outsourcing its own manufacturing needs overseas. As a result, the US doesn’t have the same infrastructure in place, which will understandably add to the cost of making chips in-country.
Whether that will remain the case, or gradually improve over time, remains to be seen. With TSMC, Intel, and Samsung all building foundries in the US, the necessary infrastructure may one day rival Taiwan.
TSMC to Charge More For Chips Made In the US
Matt Milano
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