Can someone explain to me how they can keep the price of the chip production the same in the US compared to Taiwan?
Labour, especially specialized labour, is a lot more expensive in the US.
Labour, especially specialized labour, is a lot more expensive in the US.
Also, the US govt has put in a lot of subsidies
The US has had semiconductor fabs for many years that are still operating. It just so happens that TSMC has the best process, but I don't think that has anything to do with labor costs.
> Congress created a $52.7 billion semiconductor manufacturing and research subsidy program in 2022. Commerce convinced all five leading edge semiconductor firms to locate fabs in the United States as part of the program.
> The TSMC award from Commerce also includes up to $5 billion in low-cost government loans.
This is a big deal for the US Gov because chip manufacturing is ground zero for "staying competitive" against global competition, e.g. China, who is eating the US' lunch in most areas