TSMC’s new Arizona chip manufacturing facility could be significantly more expensive to operate than its Taiwanese facilities, according to Macquarie Bank research. The high costs are attributed to the difficulties of establishing a chemical supply chain in the US.
The process of semiconductor fabrication is highly complex and requires precise calibration of tools and chemicals to produce high-quality chips. TSMC needs a stable supply chain of chemicals to maintain profitability. However, suppliers in the US are hesitant to establish facilities due to lack of economies of scale, similar to Taiwan’s Shiny Chemical Industrial Co., Ltd.
TSMC was unable to find qualified US-based chemical suppliers for its 4-nanometer chip manufacturing process, forcing it to transport chemicals from Taiwan at a higher cost. This adds up to potentially 30% more in costs compared to the Taiwanese facility. The high costs are specific to TSMC’s US operations and not applicable to other global facilities.
Macquarie Bank notes that while TSMC has expanded its manufacturing base globally, costs remain relatively high in Japan due to older process technologies.
Source: https://wccftech.com/tsmcs-us-chipmaking-costs-can-be-30-higher-due-to-chemical-supply-chain-warns-bank