TSMC Says it Still Won't Build a Fab in the US

[AleksandarK]

TSMC, as one of the largest silicon manufacturers in the world, has been subject to pressure from the Trump administration to build a Fab and manufacture silicon on US soil. The reasoning behind this is that the US government could order chips that are supposed to be used in military applications. For security reasons, they need to be manufactured on US grounds and "checked" by the US government. However, it seems like a Taiwanese company has no concrete plans to realize the building of the US Fab.

Thanks to the report of DigiTimes, TSMC has confirmed that they have resisted requests from the US government, and will not build a Fab on US soil for the government. They haven't dismissed the possibility of building one or silicon manufacturing facilities in the US completely. TSMC chairman Mark Liu has told DigiTimes previously that if the company wants to build a US Fab, it will do so because of consumer demand, not the government demand. And that is understandable. It is much easier to work with regular customers compared to the US government which would force a company to go through rigorous security levels to deliver chips.


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[Assimilator]

It's funny how the supposedly self-made billionaire Trump doesn't understand cost-benefit analysis. TSMC, which is run by actual businessmen, does.

 

[bencrutz]

It's funny how the supposedly self-made billionaire Trump doesn't understand cost-benefit analysis. TSMC, which is run by actual businessmen, does.

he believe he can force TSMC, if it won't comply, maybe force nederland's ASML to stop selling to TSMC so it would have to build one in US, anyway

 

[the54thvoid]

It's never good when a foreign company is asked by a soverign nation to build things of such importance. I mean, flip it around, if TSMC manufactured chips for the US DOD, it's not a long haul to imagine TSMC being part of US Govt. oversight. I'd see TSMC being blacklisted by Russia, China et al. A reverse Huwaii of sorts. Let's face it America spies on its allies enough (as we all do one another and have done since time blip).

And this isn't really to do with Trump (whatever you think of him) so leave the politics out of it.

 

[cosminmcm]

Can some American company/fund buy ASML, TSMC and ARM, please? Thank you!

 

[Imsochobo]

It's never good when a foreign company is asked by a soverign nation to build things of such importance. I mean, flip it around, if TSMC manufactured chips for the US DOD, it's not a long haul to imagine TSMC being part of US Govt. oversight. I'd see TSMC being blacklisted by Russia, China et al. A reverse Huwaii of sorts. Let's face it America spies on its allies enough (as we all do one another and have done since time blip).

And this isn't really to do with Trump (whatever you think of him) so leave the politics out of it.

Taiwan is in risk of invasion by china at all times.
if US has local manufacture capacity by TSMC they don't have the same interest of protecting Taiwan from China.

 

[Ravenmaster]

Of course they won't build a fab in the US. Coz then they'd have to pay the workers the American minimum wage instead of paying them in peanuts.

 

[the54thvoid]

Of course they won't build a fab in the US. Coz then they'd have to pay the workers the American minimum wage instead of paying them in peanuts.

Average annual wage in South Korea ( in US Dollars):

I didn't realise the average US wage is $56k (though the median income is $32k).

UK average is £30k ($36k). - so SK pays more (on average) than UK wage.

Point being - they pay higher than minimum wage.

 

[ARF]

Why doesn't TSMC build a Fab in Europe? Some parts of Europe have the lowest wages even compared to Africa.

 

[Vayra86]

It's funny how the supposedly self-made billionaire Trump doesn't understand cost-benefit analysis. TSMC, which is run by actual businessmen, does.

Real estate... you don't necessarily need to know anything to be successful there, just lucky

Can some American company/fund buy ASML, TSMC and ARM, please? Thank you!

Can you kindly gtfo? Thanks!

Of course they won't build a fab in the US. Coz then they'd have to pay the workers the American minimum wage instead of paying them in peanuts.

A workforce is more than two hands and feet. It is in this line of work mostly brains, in fact, but also work ethic and discipline. I think wages are the least of TSMCs worries, but capable workers most certainly is, and there is a whole supply chain in Taiwan for exactly that. In addition, national pride and value plays a major role. TSMC is Taiwan's end game right now.

 

[Fourstaff]

Their ability to manage and protect their own IP probably play a big part in their choice of fab locations. Running a fab in US can be profitable, as shown by Intel.

 

[ARF]

A workforce is more than two hands and feet. It is in this line of work mostly brains, in fact, but also work ethic and discipline. I think wages are the least of TSMCs worries, but capable workers most certainly is, and there is a whole supply chain in Taiwan for exactly that. In addition, national pride and value plays a major role. TSMC is Taiwan's end game right now.

China or its Republic doesn't have the best brains, yes, they do have very good discipline with regards to building and maintaining good infrastructure but that's it.
Everyone knows that Chinese quality is not that good and it's because they cannot compare with the Japanese or Germans, for example.

 

[Vayra86]

China or its Republic doesn't have the best brains, yes, they do have very good discipline with regards to building and maintaining good infrastructure but that's it.
Everyone knows that Chinese quality is not that good and it's because they cannot compare with the Japanese or Germans, for example.

That is not at all what I implied or even said there... and ehh right now those 'China Republican' brains brought TSMC where it is today, so its a rather puzzling conclusion you draw here. You do realize you're now saying the world leader in fab production and technology is not quite as good as others who lag behind or never even dared enter the market to begin with?! Do you even logic

 

[ARF]

That is a political decision. Why Apple works with TSMC at all, and not move to GLOBALFOUNDRIES or Intel's fabs ?

 

[Fourstaff]

That is a political decision. Why Apple works with TSMC at all, and not move to GLOBALFOUNDRIES or Intel's fabs ?

Idk, why don't you ask Apple during their Investor Relations calls?

 

[Vayra86]

Idk, why don't you ask Apple during their Investor Relations calls?

I'm still here trying to make sense of this reply to be honest. What the hell is he even on about?! Apple always sources the most efficient chip. That was Intel and it is now ARM, a writing on the wall wrt Intel's leadership. It has absolutely NOTHING to do with politics and even less with TSMC...

 

[ARF]

Idk, why don't you ask Apple during their Investor Relations calls?

Err, it looks like the US simply wants to have military access to Asia, and this is why they keep close ties with Japan, South Korea and ROC.
This is why I said political decision, I must ask the US presidents, not Apple.

 

[dyonoctis]

That is a political decision. Why Apple works with TSMC at all, and not move to GLOBALFOUNDRIES or Intel's fabs ?

IIRC, Globalfounfries, isn't currently focusing on 7nm and lower, and Intel is still trying to make enough good 10 nm stuffs for themselve, so their custom manufacturing business is kinda dodgy compared to tsmc and samsung.

 

[Flanker]

I have a former colleague who used to work at TSMC as an engineer. Graduate jobs were said to be boring with long ours with occasional night shifts. A common complaint was that people with Masters and PhD were hired to do really simple jobs. The pay is really good though with some nice perks. If he stayed there for a couple more years his salary can reach six figures in USD.

 

[las]

Why should they. Seriously. Would only bump prices up.

That is a political decision. Why Apple works with TSMC at all, and not move to GLOBALFOUNDRIES or Intel's fabs ?

Because a big part of why Apple SoCs are very good, is because they always are on the smallest node. Apple was doing 7nm SoCs long before any Android phone, and Apple does 5nm in Q4 this year.

Apple and TSMC = Love. Nothing new here. They order tons of chips and pays well.

AMD, Nvidia and others will always be 2nd in line.

 

[R-T-B]

Taiwan is in risk of invasion by china at all times.
if US has local manufacture capacity by TSMC they don't have the same interest of protecting Taiwan from China.

We protect Taiwan for a lot more than just TSMC...

 

[Super XP]

They can't slave labor workers in the USA. So they won't build a fab.

 

[ARF]

IIRC, Globalfounfries, isn't currently focusing on 7nm and lower, and Intel is still trying to make enough good 10 nm stuffs for themselve, so their custom manufacturing business is kinda dodgy compared to tsmc and samsung.

Intel has the best processes. Its 10nm process is somewhere between TSMC N7 and N5.

 

[R-T-B]

Intel has the best processes. Its 10nm process is somewhere between TSMC N7 and N5.

[Citation Needed]

Most of what I've seen pegs it around TSMC 7nm at best (optimistic)... and they still can't make enough to feed Intel, let alone others.

 

[Assimilator]

We protect Taiwan for a lot more than just TSMC...

Agent Orange has proven time and time again that no cows are sacred whenever he doesn't get his way. Taiwan is as likely to be thrown under the bus for no good reason, as any other nation that's nominally a US ally.