In an interview with the US Time magazine on the 1st, TSMC Chairman Liu Deyin finally admitted that building a factory in the United States was due to "political drive" and "the cost was far higher than TSMC's expectations."

TSMC The cost of building a factory in the United States is extremely high, and its motivation has long been widely questioned. In an interview with the US Time magazine on the 1st, TSMC Chairman Liu Deyin finally admitted that building a factory in the United States was due to "political drive" and "the cost was far higher than TSMC's expectations."

not only has the cost increased, but TSMC also faces the risk of "sheep entering the tiger's mouth". At the end of September, the United States required TSMC to hand over company data within 45 days. Taiwanese media bluntly stated that the Taiwan authorities are so active in cooperating with "anti-China", not only did the United States not help resolve the predicament, but also had the idea of ​​Taiwan's economic lifeline. The DPP can be said to have lost both his wife and his troops.

Screenshot of Time magazine's report

According to Taiwan media reports on the 7th, TSMC is building a factory in Arizona, USA. As one of the production bases of 5nm chips, it is expected to start mass production in 2024, with a monthly production capacity of 20,000 pieces, and the investment from 2021 to 2029 will reach about US$12 billion. Taiwanese media estimates that TSMC will build four or five factories here.

However, due to the serious shortage of civil engineering and power systems in the United States, TSMC not only has a significant increase in factory construction costs, but also has lagged behind expectations. It was originally expected that the equipment would be installed next year, but now it can only be postponed later.

Recently, TSMC founder Chang Zhongmou said in his speech that land and electricity in the United States are cheap, but at the same time, "we must work hard to find qualified technicians and workers."

On October 1, the US Time magazine published an interview with TSMC Chairman Liu Deyin. During the interview, Liu Deyin also complained that the cost of building a factory in the United States was much higher than TSMC's expectations. TSMC originally planned to invest $100 billion in the next three years to expand production capacity, but now, "the more I look at it, the more I feel it is not enough."

At the same time, Liu Deyin finally let go of the question that investment in the United States has limitations. He said this was facilitated by "political drives for our customers" and insisted that " semiconductor localization will not increase the elasticity of the supply chain." This may even "reduce elasticity," he said.

Speaking of Sino-US relations, Liu Deyin said that the current hostility between China and the United States is not good for anyone. "The United States and China need to understand that they may not be friends, but they are not enemies," said Liu Deyin. "We need common rules... to make people have some expectations about how to do business."

Liu Deyin does not agree with the so-called "invasion" remarks about cross-strait relations, saying that the so-called threat "has been exaggerated." He said: "Taiwan will never do anything to trigger a war." But he also said that cross-strait relations are no longer entirely decided by Taiwan, "This is actually China-US relations."

not only has the rising cost, but TSMC also faces the risk of "sheep entering the tiger's mouth". Not long ago, the United States asked TSMC to hand over the company's relevant data within 45 days.

U.S. Commerce Secretary Raymondo claimed at the summit that the United States needs more information about the chip supply chain to improve transparency in handling the crisis and identify the root cause of the shortage. Raymondo said, "Our (policy) toolbox has many ways to get companies to hand over data. Although we don't want to go that way, we will definitely take action if necessary."

The US demand shocked all walks of life in Taiwan and caused widespread concerns. Fang Shuhua, deputy general manager of legal affairs and legal director of TSMC, responded on the 6th that the incident is still under evaluation, but emphasized that it will not disclose sensitive information from customers.

. Taiwan’s “Economic Minister” Wang Meihua defended the United States that it was “voluntary” and would be left to enterprises for their own considerations, while the Taiwan authorities would “see the situation” before deciding whether to intervene in coordination.

And the Taiwan authorities' "weak" statement obviously cannot be bought with people.According to Taiwan's "China Times News Network" commented on the 7th, even if the Taiwan authorities actively cooperated with "anti-China" and paid a heavy price, the United States not only did not help resolve the predicament, but also had the idea of ​​Taiwan's economic lifeline. The DPP can be said to have lost both his wife and his troops. The panic and confusion in his heart can be imagined.

"China Times News Network" reported that the DPP has made Taiwan a pioneer under the banner of "anti-China" and even TSMC ignored it. After losing a lot of valuable value and paying a lot of heavy prices, the DPP left it to Taiwan probably only with pretending "anti-China and Taiwan protection" slogans.

Source: Observer.com

Process Editor: TF022