Monday, January 20th 2025

TSMC CEO Believes American Foundries Will Trail Behind Primary Taiwanese Sites

C.C. Wei, TSMC CEO and Chairman, has shared his latest views regarding his company's North American manufacturing center—Reuters cornered him for comment during a mid-week appearance at a National Taiwan University-held event. The Taiwanese government has recently lowered its "silicon shield"—following much (reported) deliberation over "legal restrictions on transferring leading-edge process technology overseas." This relaxation of rules has TSMC considering a new set of investments for operations outside of Taiwan—with an expansion into advanced node process manufacturing. Currently, 2 nm (N2) is a home turf-speciality—industry experts estimate an expenditure of $28-30 (USD) billion to bring this production technology over to the States. TSMC's CEO has described additional challenges—on top of (and impacting) finances—local bureaucracy is a big one.

Wei stated: "every step requires a permit, and after the permit is approved, it takes at least twice as long as in Taiwan." According Reuters, he reckons that it would be difficult for their North American sites to access the latest technologies ahead of teams in Taiwan. He detailed his company's recruitment of several experts—tasked with talking to local government; about regulatory issues. This was not a cheap undertaking: "we ended up establishing 18,000 rules, which cost us $35 million." TSMC's Arizona production hub will (eventually) consist of three large factories—despite long-term teething problems, Fab 21 is reported to be churning out the first wave of "Made in America" product for a very important client: Apple. Wei expressed positives views when asked about the USA site's prospects—during an earnings conference (Jan 16)—he believes that it will eventually produce the "same quality of chips as in Taiwan," through a "smooth ramp-up process."
Going back to TSMC's native production prowess, Wei said: "it is not that we do not want to ramp up the same technology (in the U.S.) as in Taiwan." The aforementioned regulatory problems—as well as skilled labor shortages, and supply chain woes (e.g. shipping sulfuric acid overseas)—result in slowed progress State-side. He continued with his observations: "when we introduce a new technology into manufacturing, the fab, the process is so complicated—it has to be very close to the R&D people. So, the initial phase of the ramping up always come from the fab close to R&D. So, in that sense, we want to ramp up the same kind of technology in the U.S., but that practically is a little bit difficult. So, Taiwan will always be first."
Sources: Reuters Technology News, Tom's Hardware, Forbes (image source)
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9 Comments on TSMC CEO Believes American Foundries Will Trail Behind Primary Taiwanese Sites

#1
Panther_Seraphin
Suspecting part of this is to get tax breaks in the US, the other bit is to keep Taiwan relevant as they want the US to have an interest in keeping it out of Chinese hands.

Go back 30 years to the Hong Kong handover and tell people the only reason West Taiwan doesnt own Taiwan already is because of TSMC.......
Posted on Reply
#2
Assimilator
Panther_SeraphinSuspecting part of this is to get tax breaks in the US, the other bit is to keep Taiwan relevant as they want the US to have an interest in keeping it out of Chinese hands.

Go back 30 years to the Hong Kong handover and tell people the only reason West Taiwan doesnt own Taiwan already is because of TSMC.......
It's more that they are afraid that if they don't play nice, the incoming US president will cut them off and let PRC take over. Which would be economic suicide for the US, but the new president has never cared much about ruining his country for the sake of his ego.
Posted on Reply
#3
kapone32
It is simple really. We have stronger labour laws in North America. Have you ever seen any leaked video of workers at Foxconn building Iphones?
AssimilatorIt's more that they are afraid that if they don't play nice, the incoming US president will cut them off and let PRC take over. Which would be economic suicide for the US, but the new president has never cared much about ruining his country for the sake of his ego.
Exactly. The whole thing is insane as Taiwan was only created as a way to kill US industry in the PC space. Everything in the US is political anyway. Like no Health care and Diversity, Equity and Inclusion (The spirit of the Internet) is a huge negative to some.
Posted on Reply
#4
Assimilator
kapone32We have stronger labour laws in North America.
We'll see how true that is in 4 years' time.
Posted on Reply
#5
kapone32
AssimilatorWe'll see how true that is in 4 years' time.
I too am afraid of what is to come. When the Concentration Camps come people might take it serious. Just look at who they want for Defense Leader in this Gravity, Just look at how many people lost their shirts with that Trump coin.
Posted on Reply
#6
phanbuey
Until they pour a few hundred billion into Intel and Glofo as part of defense spending.

Then i don't think so.

Taiwan is a benefactor of being able to afford the best and the brightest in their country, but if enough money goes into fabs stateside they don't stand a chance.
Posted on Reply
#7
kapone32
phanbueyUntil they pour a few hundred billion into Intel and Glofo as part of defense spending.

Then i don't think so.

Taiwan is a benefactor of being able to afford the best and the brightest in their country, but if enough money goes into fabs stateside they don't stand a chance.
Do you remember 1980-1982? There was no need to move to Taiwan. In Grade 9 we learned to Program Commodore 64s. The affordability argument was total BS.
Posted on Reply
#8
phanbuey
kapone32Do you remember 1980-1982? There was no need to move to Taiwan. In Grade 9 we learned to Program Commodore 64s. The affordability argument was total BS.
Yeah and then every industry sent every task they could overseas because they could make the same stuff for 1/50th of the cost. Not sure what you mean by total BS.

Btw they're making programmable drones and building robots in shopclass and websites in computer class, so not sure if not learning how to program a commodore is really a regression.
Posted on Reply
#9
kapone32
phanbueyYeah and then every industry sent every task they could overseas because they could make the same stuff for 1/50th of the cost. Not sure what you mean by total BS.

Btw they're making programmable drones and building robots in shopclass and websites in computer class, so not sure if not learning how to program a commodore is really a regression.
That was not until 1989 and did not include the Military. That was the final solution anyway to what Taiwan started.
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Jan 20th, 2025 20:32 EST change timezone

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