TSMC Arizona Plant Operations Will Reportedly Cost 30% More Than Taiwan Sites

[freeagent]

I deal with it every day and our trucking industry is one of the best in the world. What shitshow are you talking about?

I don't think so. Look at the US railways - they are gone now. No one invests in them, there are thousands of accidents on the US railways every year.

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You don't know US shipping. We're not Europe.

This is more our style.

 

[kondamin]

At least some chemicals are from Japan exclusively.


TSMC's wafer manufacturing capacity exceeded 17 million 12-inch equivalent wafers in 2024. - Statista
A 300 mm wafer yields roughly between 50,000 and 60,000 mm², out of the total 70,700 mm² area.
Power density in logic chips of recent design, the kind that TSMC mostly produces, is around 1 W/mm².

Logic chips made by TSMC alone each year consume one terawatt of electric power when doing their job, memory/storage/cooling not included. If you're holding out hope for the planet, think of that.

1TW year is a small 114MW Power plant. Basically 1 modern nuclear plant can run ~9TSMC's
If your number is correct.

Power consumption isn't an issue if it can be generated cleanly, like nuclear or geothermal.

 

[Baba]

That will translate to 30% price increase for ALL TSMC products.

This is just for the Arizona fab. Let's say each company uses Arizona fab for 10% of their products which now cost 30% more to manufacture, companies can absorb it or spread it out and at most it will be a 3% price hike spread out across the entire product lineup.

"The increased expenses stem from higher tariffs and transportation costs associated with importing necessary materials from Taiwan."

Their supply chain is not setup in the US yet. Once it is, stuff should cost similar to the stuff in Taiwan.

Maybe this is the reason for the shitty intel's fabs, they are in US, just like GloFo and more minor semiconductor manufacturers

Intel is having engineering challenges not supply chain issues.

No company is going to buy a product from Arizona at that kind of markup. Like the article says, they will be competing against themselves. If they don't immediately increase prices across the board to meet that 30%, the Arizona fab will very quickly sit idle. Unless the USG thinks they can single handedly keep them afloat.

"Four major technology companies—Apple, NVIDIA, AMD, and Qualcomm—have committed to purchasing chips from the plant for their AI and high-performance computing needs."

There is more demand than capacity so there will be buyers even at higher prices. It will definitely not sit idle.

 

[john_]

This is just for the Arizona fab. Let's say each company uses Arizona fab for 10% of their products which now cost 30% more to manufacture, companies can absorb it or spread it out and at most it will be a 3% price hike spread out across the entire product lineup.

"The increased expenses stem from higher tariffs and transportation costs associated with importing necessary materials from Taiwan."

Their supply chain is not setup in the US yet. Once it is, stuff should cost similar to the stuff in Taiwan.

Usually when a company can find excuses for a price increase, the price increases in a way that is NOT fair to the final consumer. That 3% hike you say will be what AMD and Nvidia and others customers of TSMC will face, but the final consumer will see a much higher retail price and the explanation for that higher price will be a very general "higher manufacturing (TSMC) costs" with a few "leaks" to the tech press that this is a result of the higher prices in the US fab(s).

 

[maxfly]

This is just for the Arizona fab. Let's say each company uses Arizona fab for 10% of their products which now cost 30% more to manufacture, companies can absorb it or spread it out and at most it will be a 3% price hike spread out across the entire product lineup.

"The increased expenses stem from higher tariffs and transportation costs associated with importing necessary materials from Taiwan."

Their supply chain is not setup in the US yet. Once it is, stuff should cost similar to the stuff in Taiwan.


Intel is having engineering challenges not supply chain issues.



"Four major technology companies—Apple, NVIDIA, AMD, and Qualcomm—have committed to purchasing chips from the plant for their AI and high-performance computing needs."

There is more demand than capacity so there will be buyers even at higher prices. It will definitely not sit idle.

Good point. The odds that they are paying for this supposed 30% discrepancy TSMC is reporting is nil. I get the feeling TSMC is playing the squeeze game on suppliers here.

 

[Fazio98]

Goods produced in Taiwan have little or no US tariffs.Goods made in China by Taiwanese companies will be subject to large tariffs if President Elect pan is put into place.
TAIPEI, Nov 7 (Reuters) - Taiwan will help companies relocate production from China given the likely large impact from tariffs that incoming U.S. President Donald Trump has promised to impose on the country, Economy Minister Kuo Jyh-huei said on Thursday.

Also the 30 year old Samsung Chip plant in Austin TX runs 24/7/365 with locally sourced materials.
The new Samsung Factory in Taylor TX is completed but unopened due to shortage of customers and a supply chain for Advanced chips that cannot be made in Austin.
Samsung in Korea is also in trouble due to poor yields of it's 3nm and 2nm chips

TSMC employees are paid much lower with fewer benefits in Taiwan compared to those with the same skill sets at TSMC in Phoenix AZ.The Taiwan government is the largest shareholder of TSMC so it makes a lot of the discissions.

 

[starfals]

This is more our style.

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Haha, what is that? The father of the ghost rider and his mount?

Anyways, if these higher prices ever go to Europe and our CPUs/GPUs, its all over. They already overprice stuff here big time cus of the taxes and shipping. If this also somehow transfers here... ho boy. Owning computer stuff will be a thing of the past for many, at least newer stuff. Second hand market is a whole other story. Im tired of Jiz laptops

 

[TumbleGeorge]

This is just for the Arizona fab.

Yes, because half of employees in Arizona fab right now are Taiwanese is +30% Imagine times when all employees are Americans costs maybe will increase prices to 45%+ difference.