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“Every step requires permission”
CC Wei noted that building a new factory in Arizona takes at least twice as long as the process in Taiwan. Speaking at National Taiwan University, Wei said: “Every step requires a permit, and once the permit is approved it takes at least twice as long as in Taiwan.” he said. Because, that it is difficult for the company to use the latest technologies in the USA before Taiwan he stated.
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Lack of employees and high costs
Wei on extension of Arizona project lack of qualified workforce, gaps in the supply chain and chip factories lack of regulations He said it was effective. Also pointing out that chemical supply costs are five times higher in the USA than in Taiwan, Wei stated that they send sulfuric acid from Taiwan to Los Angeles and then transport it to Arizona. They also brought half of their construction workers from Texas to Arizona, which increased transportation and lodging costs, he said.
The US government aims to diversify geographic risks by moving chip production out of an Asia-dominated industry. In this context, for TSMC’s investment in Arizona An incentive of $6.6 billion package was offered. US Secretary of Commerce Gina Raimondo announced last week that TSMC started producing advanced 4-nanometer chips for US customers in Arizona, emphasizing that this is an important milestone in the Biden administration’s semiconductor projects.
Ultimately, despite all this support, it is clear that TSMC’s operations outside Taiwan face serious time and cost challenges, especially for cutting-edge technologies.
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