TSMC Founder Puts Shade on Intel’s Plans: Investing in Chip Production in the US is a Waste of Money

TSMC founder Morris Chang has once again voiced his opinions on Intel’s foundry expansion plans in the US. According to Chang, setting up advanced chip factories on US soil is simply not profitable. The manufacturing costs in the US are 50% more expensive than in Taiwan, claimed the industry veteran. He gave the example of TSMC’s Oregon fab which has been functional for 25 years now. The foundry continues to be profitable but all plans to expand production have been abandoned.

In order to establish a proper supply chain, the US needs to address its fab talent shortages which is another key issue. At the same time, Chang conceded that the West has a rich IC design talent pool, something Taiwan and TSMC severely lack.

Speaking about the foundry’s plans to establish a fab in Arizona, he believes that it was the result of intense pressure from the US government. The $50 billion CHIPS act, according to Chang, will be far from enough to satiate the ever-growing demands of advanced production facilities, making it hard for the US to compete with its Asian rivals.

If there’s a war between China and Taiwan, the US will have a lot more to worry up than chip manufacturing. If on the other hand, there’s no large-scale conflict, then the whole effort will be a massive waste of capital.

Source: The Register

Areej Syed

Processors, PC gaming, and the past. I have written about computer hardware for over seven years with over 5000 published articles. I started during engineering college and haven't stopped since. On the side, I play RPGs like Baldur's Gate, Dragon Age, Mass Effect, Divinity, and Fallout. Contact: areejs12@hardwaretimes.com.
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