Comment by spprashant
Comment by spprashant 4 days ago
Can someone explain to me how they can keep the price of the chip production the same in the US compared to Taiwan?
Labour, especially specialized labour, is a lot more expensive in the US.
Comment by spprashant 4 days ago
Can someone explain to me how they can keep the price of the chip production the same in the US compared to Taiwan?
Labour, especially specialized labour, is a lot more expensive in the US.
At this point it's not really a lot more expensive especially when factories are so heavily automated.
The US has had semiconductor fabs for many years that are still operating. It just so happens that TSMC has the best process, but I don't think that has anything to do with labor costs.
this likely helps:
> Congress created a $52.7 billion semiconductor manufacturing and research subsidy program in 2022. Commerce convinced all five leading edge semiconductor firms to locate fabs in the United States as part of the program.
> The TSMC award from Commerce also includes up to $5 billion in low-cost government loans.
This is a big deal for the US Gov because chip manufacturing is ground zero for "staying competitive" against global competition, e.g. China, who is eating the US' lunch in most areas
It didn’t say that it was the same price? Customers want them produced in the US, so will probs pay extra for it. Especially given that politically it’s a good look for them
Also, the US govt has put in a lot of subsidies