AMD CEO Lia Su said that chips made in TSMC’s Arizona facility are more expensive than those made in a comparable facility in Taiwan. Dr. Su said that U.S.-made chips cost ‘more than 5% but less than 20%’ higher, and she added during an interview with Bloomberg that these are costs that the company must shoulder to have a more resilient supply chain. “I think the economics of it are we have to consider the resiliency of the supply chain, I think we learned that during the pandemic — the idea that you think about your supply chains not just by the lowest cost, but also about reliability, about resiliency, and all those things. I think that’s how we’re thinking about U.S. manufacturing,” the CEO said to Bloomberg’s Ed Ludlow. “And yes, it will be a little bit more expensive — frankly, some of the work that has been done to encourage semiconductor investment has been helpful. But when you really average it across everything else that you need to build this computing infrastructure, I think it’s a very good investment for us to make to assure that we have American manufacturing and resiliency.” TSMC Arizona has already reportedly started manufacturing 4nm chips earlier this year, with yield and quality said to be comparable to that of its factories in its home country of Taiwan. And while many companies fear that moving their manufacturing to the U.S. would cost significantly more, some experts estimate that wafer production at the Arizona site is only about 10% more expensive compared to Taiwan. Despite that, the company says that its customers are willing to pay a higher price, with production already sold out until late 2027. Dr. Su said that the company expects to start receiving silicon from TSMC Arizona by the end of the year, making it one of the first tech giants after Apple to receive ‘made in America’ chips. AMD’s bigger rival, Nvidia, is also sourcing some of its Blackwell system production from the site. All these developments are a win for the U.S., as its push to bring back domestic semiconductor manufacturing is beginning to bear fruit, despite the slightly higher costs. Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.