Summary

TechInsights reports that producing wafers at TSMC’s Arizona fab costs only 10% more than in Taiwan, contradicting claims of excessive U.S. production costs.

High expenses stem mainly from building the first overseas fab in decades with unskilled labor, not operational costs.

Equipment costs, which dominate wafer expenses, are consistent across locations. Labor costs, though higher in the U.S., account for less than 2% of total costs due to automation.

Logistics are slightly more complex but not significantly costlier. TSMC reportedly charges a 30% premium for U.S.-made chips.