TSMC: It is not feasible to build a fab in the US


For manufacturers, the location of their factories is very important because it determines the price of the end product. This does not only entail the cost of labour but it also looks at the country’s policies and taxation. For some time now, the US has not been favourable to pitch a factory, especially for non-US companies. TSMC is a global leading chip manufacturer. In addition to its American commercial customers such as Apple and AMD, the Taiwanese chipmaker also manufactures chips for DARPA (American Defense Advanced Research Projects Agency).

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TSMC's 5nm process
TSMC 5nm chip

Last month, there were reports that high-ranking US officials contacted TSMC. According to speculation, the meeting was to lobby the transfer of production of sensitive chips to the US. In this regard, TSMC Chairman and Co-CEO, Liu Deyin, said recently that the US has not directly contacted TSMC. Instead, TSMC’s US customers have received pressure to move production facilities back to the US.

Liu Deyin believes that it is not feasible to transfer TSMC factories to the United States due to cost constraints. He pointed out that the company will open a new research institute in Hsinchu to explore advanced materials after silicon. According to the company’s plan, silicon will end in the 2nm era and may be replaced with new substrates such as carbon nanotubes.


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