US-Made Microchips Show Rise in Prices
(MENAFN) Microchips produced in the United States are priced up to 20% higher than their Taiwanese counterparts, according to Lisa Su, the CEO of US tech company AMD, which is one of the leading purchasers of these chips.
Washington has been striving to increase domestic semiconductor manufacturing as part of its broader competition with China for global dominance.
Access to these crucial chips has become a critical arena in this rivalry.
In response to the shifting global dynamics, Taiwan Semiconductor Manufacturing Co. (TSMC), caught between conflicting economic and geopolitical pressures, revealed plans to relocate part of its manufacturing operations to Arizona in 2020.
During a speech at an artificial intelligence conference in Washington on Wednesday, Lisa Su remarked that the cost disparity between US and Taiwanese chips was “more than 5% but less than 20%.”
Nevertheless, in an interview, Su acknowledged that this extra cost was justifiable.
She emphasized the importance of “resiliency in the supply chain,” reflecting on the lessons learned during the pandemic.
In 2022, former President Joe Biden enacted legislation allocating $280 billion to support the growth of US semiconductor production.
More recently, AMD and President Donald Trump unveiled a $100 billion plan to construct five additional chip fabrication plants within the United States.
However, TSMC has faced difficulties in its US production efforts, citing factors such as high construction costs, a shortage of skilled labor, and other logistical challenges.
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