According to Taiwan media reports, TSMC founder Zhang Zhongmou delivered a speech as a guest at the Brookings Institution, an American think tank, saying,Increasing domestic production of chips in the United States is a wasteful and futile move. He believes that the U.S. chip manufacturing industry does not have the talent pool it needs to expand and succeed.
Zhang Zhongmou said,The large population of Taiwan is an indispensable condition for the success of TSMC’s wafer manufacturing.. At a time when professionals in the U.S. and other countries are leaving manufacturing, Taiwan’s talent has matured, making it an ideal location for pure-play foundry.
Zhang Zhongmou also emphasized that the cost of manufacturing in the United States is prohibitive. As evidenced by 25 years of manufacturing experience at TSMC’s Oregon plant, which is profitable, it has all but given up on expansion. “We were naive at the time when comparing costs, but it costs 50 percent more to make chips in the U.S. than in Taiwan,” he said, adding that TSMC has repeatedly arranged U.S. and foreign personnel for the Oregon factory, but both Not much cost reduction.
It is understood that TSMC is building its Arizona fab, and equipment move-in is expected to begin in the second half of 2022. TSMC expects to start mass production in the first quarter of 2024 at the Phase 1 of its new Arizona fab.
TSMC has raised $3.5 billion in bonds for its new fab in Arizona, according to a letter of intent, Reuters reported on April 20.
However, with regard to the news of TSMC’s construction in the United States, industry watchers have expressed concern about the ability of the United States to meet its commitment to support TSMC’s Arizona fab project. Observers say the cost of adding TSMC’s new Arizona factory will be huge. Without adequate government subsidies, it is difficult to predict when the plant will generate revenue.
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