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TSMC acknowledges that investing in the US chip industry is a waste of money

morris-changthe founder of TSMC, was quite relaxed after conducting a brief interview, which basically boiled down to a statement in which he indicated that the United States’ attempt to increase its domestic chip production will be “a useless and costly exercise“.

According to him, this is due to the combination of a severe shortage of talent in the manufacturing sector, in addition to the fact that the costs of manufacturing a chip in the United States are much higher than in Taiwan. More specifically, we are talking 50 percent more.

The United States has a reservoir of design talent, “It’s the best in the worldsaid Morris Chang. “Taiwan has very little design talent, and TSMC has absolutely none. But to develop and grow a successful chipmaking industry, the United States will need to address its own serious shortage of design talent. manufacturing.”

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

TSMC

Obviously, the big question behind this waste of information was why then TSMC recently announced an investment in Arizonaand basically said the decision to build the new factories in the United States was not his.

We did this at the request of the US government and TSMC felt we had to.Chang said. Yet he believes that all the billions in subsidies the United States sets aside to increase semiconductor assembly in the country. will continue to be well below the amount needed to stimulate local chipmakers.

US production will definitely increase“, mentioned, “At least a little“.”There will be a sharp increase in unit cost and it will be difficult for the United States to compete internationally“In conclusion, he indicated that if there is ultimately no conflict between China and Taiwan, basically the United States will have invested a large amount of resources and money that will not allow them to be competitive in the market, whereas if there really is a war, “America will have to worry about a lot more than making chips“.

via: The Registry

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