Wafers produced in Arizona cost only 10% more for TSMC, analysts say

TSMC talks about the costs of producing its wafers outside Taiwan since it started building its FAB 21 in Arizona, USA. The highest costs will be estimated to result in components produced in Uncle Sam’s country up to 30% more expensive than similar from TSMC homeland. US analysts, however, point out that each wafer produced in Arizona costs only 10% more than those made in Taiwan for the company.

The information comes from Techinsights, where one of his analysts, G. Dan Hutcheson, says categorically: “It costs TSMC less than 10% more to process a 300mm WAFER in Arizona than the same wafer made in Taiwan.”

The statement is based on the fact that the highest costs for the manufacture of semiconductors come from the necessary machinery for this. Tools like EUV machines from ASML, for example.

Most are imported and are the same cost regardless of the country where it will be installed. Once the factory is established, the production cost should not vary so much for TSMC, it claims Techinsights analysis.

Labor represents little investment for TSMC

An aspect normally cited when it comes to the costs of establishing a US factory has to do with labor costs. According to Tom’s hardware, salaries in the United States can reach three times what is paid in Taiwan for the same jobs.

According to the analysis site, however, the manufacturing process of modern wafers is highly automated, employing a minimum contingent of people. They even mention that only 2% of the total cost of TSMC production is intended for labor, so the impact of more expensive workers should not be so expressive.

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It is worth remembering, however, that TSMC will still need for a long time to send the wafers produced at FAB 21 to Taiwan to finish and pack the chips made with them. This will incur more logistics costs, but there are already plans to establish installations for semi -camoductors packing in the US as well.