back to article TSMC, Samsung want slice of America's $52b chip subsidies

Contract chip manufacturers TSMC and Samsung Electronics reportedly want to ensure they can receive some part of the $52 billion in subsidies the United States plans to use to expand the country's chipmaking footprint. Intel, which hopes to compete against TSMC and Samsung with a rejuvenated foundry business, has placed itself …

  1. El Bard

    An interesting perspective appears when one considers the possible future of this endeavor, and whether that includes more than can be chewed:

    https://www.securityinfowatch.com/video-surveillance/news/21255954/cost-to-rebuild-us-semiconductor-manufacturing-will-keep-growing

    Quotes:

    "But U.S. companies have never lacked money to build fabs, Clark said. What drove the companies out of the production business in the first place was the high cost of operating such facilities compared to competitors abroad, who had the benefit of not only government subsidies but also in many cases lower labor, tax and regulatory compliance costs.

    [...]

    Over the next two decades, the spending required from the public and private sectors to build and operate enough fabs to give America a reliable supply for most of its needs will probably exceed $500 billion, including the initial $52 billion, semiconductor policy experts at the Potomac Institute for Policy Studies told CQ Roll Call this week. Other experts said that estimate is reasonable."

    Moreover, as the EETimes is fond of reporting

    https://www.eetimes.com/reshoring-chip-industry-risks-failure-with-just-more-fabs/

    https://www.eetimes.com/us-electronics-reshoring-plan-risks-missing-the-boat/

    There is no resilience in having more fabs, since chips need substrates, PCBs and all the materials needed to build them, most of which are in the Far East.

    "The global PCB industry, worth about $60 billion in revenue last year, includes an ecosystem of suppliers, parts of which have nearly disappeared from the US. The US has only one supplier of yarn that’s used to make the woven glass in PCBs, according to Kelly."

    There is an interesting discussion to be had regarding the real motives that are driving this particular investment, and what part it plays in the global scenario (see same talks with Intel and TSMC happening in Europe, China 2049, ...)

    1. NeilPost Silver badge

      It will end up with more US plants or R & D for Samsung and TSMC… akin to you either fairly offer subsidies and incentives to Honda, Toyota, Nissan, Subaru, JLR, BMW or you technically stifle your market with barriers which are reciprocated elsewhere. Look at the US technically advanced car/SUV/pickup market v’s the very localised big trucks (though ironically much are now globally owned by Volvo or Scania anyway).

      Last I was in the US it seems the consumer LOVE buying American made Jap (and growing South Korean) vehicles.

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