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Comment by deltaseventhree | Hacker News Reader

It's possible. With subsidies. The US is literally paying tsmc for this to even be viable.

Tsmc is not coming here because it's an economically wise move. They are coming here knowing it's an economically irrational move.

Politics is the reason for this move. It is not a clear cut win.

Your post has the aroma of patriotism. Patriotism blinds us to harsh truths. Why do you love how people were wrong when they said we can't make chips in the US anymore? You shouldn't feel love or hate for any of these statements.

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> Tsmc is not coming here because it's an economically wise move.

No, it's an economically wise move because of the politics. This plant allows TSMC to gets the CHIPS subsidy, but maybe more importantly it allows them to become part of the military industrial complex which requires that products are made domestically. This fab will print money.

The subsidies make the plant break even. Defense spending is basically another subsidy. Most of the weapons the US makes is useless in a civilization that has mostly been at peace for a long time. Hard to say how far defense will go though in terms of spending.

You are definitive about defense spending in a recession. This is wrong. Aspects of the government will begin pulling back. We do not know how this will effect tsmc.

This move from a profitablity standpoint is break even as far as we know. It makes no economic sense.

Btw. This isn't something I'm making up. The CEO of tsmc mark liu stated this to Nancy pelosi during her visit. Also her husband is dumping tsmc stocks for unknown reasons.

> Aspects of the government will begin pulling back.

Defense spending never goes down. It's a key way the government injects money into the economy during recessions.

> The CEO of tsmc mark liu stated this to Nancy pelosi during her visit

Every CEO tells politicians to give them more money, that isn't evidence of shit other than being competent.

Inflation is a problem right now. A huge problem. The recession is actually the result of the government pulling back. It is a necessary action.

Interest rates will increase spending will be pulled back to stop inflation. A recession is the tool being used to stop inflation.

The CEO did not ask for money. The money was already given. The CEO was simply stating the status quo. Helping her come to terms realistically with what is truly going on with the Arizona plant. Look it up.

> Most of the weapons the US makes is useless in a civilization that has mostly been at peace for a long time

It's not useless, it's all about power projection. When you go to rob a bank and take a gun with you that you will never use then you don't call that gun useless because thanks to projecting your deadly power with it you were able to successfully rob the bank.

>> a civilization that has mostly been at peace for a long time

The United States has had around 20 years of peace since the Declaration of Independence was signed in 1776.

Your post has an enormous aroma of patriotism. Where were you when Taiwan was subsidizing TSMC? They were only able to outcompete Western fabs due to the enormous amount of government help they got in the early days. Those Taiwanese leaders sure were stupid to have invested in chip manufacturing.

Patriotism for America at best. I'm American. Just not biased. Patriotism is a form of bias. When you have none you see the truth more clearly.

Taiwan subsidized tsmc for tech. Once the tech was established the subsidy ended.

Right now the US is subsidizing tsmc for simply switching locations. Once the location is switched the economic output of this plant will be negative so the subsidies have to remain.

The US chip market is not capable of making competitive chips. Not without economic assistance. This is categoric fact.

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