Building semiconductor plants in the US takes twice as long, costs twice as much as in Taiwan

The big picture: The U.S. and many Western markets are simply not as efficient as Taiwan in building semiconductor fabrication (fab) operations. According to reports, 18 new fab construction projects are planned for 2025 alone, making it crucial to address these challenges. The West must streamline fab construction processes to catch up with the well-established semiconductor ecosystems of Taiwan and other Asian manufacturing hubs. TSMC encountered significant challenges when it began constructing its fab in Arizona, facing a trifecta of issues that underscored the stark contrast between fab construction in the U.S. and Taiwan. First, TSMC struggled to find skilled workers locally, a problem rarely encountered in Taiwan. Second, cultural differences between TSMC's Taiwanese management and American employees created unforeseen obstacles. Perhaps most critically, navigating local regulations proved difficult for the global chip manufacturer. However, these issues were not solely due to ... Read full article.