Of course TSMC will charge more for chips made outside Taiwan!

As if massive taxpayer-funded subsidies weren’t enough inducement for moving some of its production abroad, TSMC now wants to charge those foreign customers a premium for the privilege of buying locally made chips

“If a customer requests to be in a certain geographical area, the customer needs to share the incremental cost,” said CC Wei, chief executive, TSMC"

It also expects lower profitability this year due to soaring power costs in Taiwan, the impact of Taiwan’s recent earthquake and a less-than-expected improvement in 3nm manufacturing efficiency
https://www.ft.com/content/ef8e2dd6-9e19-4997-aef7-0b9a1838588e​

2 Likes

I’m surprised that the Chips Act doesn’t prohibit that.

I am surprised that anyone is surprised. See the “TSMC to build 3rd Fab” thread. Do TSMC read this board?
It’s being presented badly by TSMC though and could backfire.

1 Like

You can’t really bribe a foreign manufacturer to set up shop on your shores at much higher cost and then expect him to play nice, can you?
Unless of course you increase the bribe to cover any and all incremental costs.

Taxpayers paid upfront for the onshoring. They will now pay even more for every widget emerging from that truly “fab” example of manufacturing competitiveness😄

Yes, tact does not appear to be high on his list of skills😄

But the bragging rights on this should be good for this round of elections at least. :smile:

There is more to this than bragging rights. Arizona is suffering economically from drought more than most. Their significant agriculture business is shrinking. This project will bring solid middle class jobs to a state that can use them. It will protect America’s chip flow by creating a TSMC fab outside of Taiwan. It gives China less of a reason to invade Taiwan to get full control over TSMC. So it will help Americans, help the American economy, and help America’s foreign interests. The CHIPS Act is a form of insurance, and we all pay for insurance because it usually makes sense. To imply it was done just to win an election also implies you are bringing your support of Trump into your economic analysis and ignores how large a bipartisan majority supported passing the CHIPS Act. Trump could easily have passed the same law but chose not to, or didn’t even think of it.

Please leave politics off this stock analysis board. Even if you intended it as a joke, I not find it funny. Trump also pretends to be joking about things he wants to normalize. If TMF has become partisan (for either party) I see no reason to remain here.

2 Likes

Hi Roleplayer - thanks for your response
I heartily agree that politics is unwelcome on stock boards

However, almost everything about the US economy (and many others) seems to be politically driven, if you just reflect on the various factors you listed in the TSMC decision:

Also, does poking fun at a Biden government initiative automatically equal Trump support? You do realize there are many shades in between the polar opposites of black and white?

Politics is SO unwelcome on the boards that there was a policy against it. My only posts ever removed from TMF were removed with other posts that all had strayed into politics.

Was the anti-politics rule removed? Why weren’t we told? Considering we computer users were forced into a PC format with no other option by TMF, and that drastically reduced posts and interest here, why should we think TMF cares about us when the Fool Employee who violated policy doubles down on his or her own political joke.

It’s just a joke if Trump is not on trial for committing election fraud. It’s just a joke if you make jokes about both of the unpopular candidates for president. The no politics rule is in black and white.

Right now the shades are Trump calls Biden Sleepy Joe while falling asleep in his criminal trial. Trump took credit for ending Roe v. Wade then lies about having done so. Trump is in the first of four criminal trials while claiming Biden is the real crook.

We live in black and white times. If TMF now is endorsing Trump via joking about Biden, but can remove any posts I make about Sleepy Don, how are you anything but another political board?

I’ve been a Fool since last century. I twice wrote Fool of the Day posts (others here have written more). Today’s Fool seems to employ Fox host wannabes. Follow your own rules, or make sure to write jokes about both presidential candidates, if you actually care about TMF’s rules.

2 Likes

Hi again - for the record I am not, and never was, a Fool employee
Like you, I’ve been a Fool member for several decades, and have recently resigned my Fool contractor role

In case you’ve forgotten, Trump pushed the whole China sanctions/ Make in America routine, and Biden is simply continuing it.
What’s sauce for the goose is sauce for the gander :slight_smile:

1 Like

“If a customer requests to be in a certain geographical area, the customer needs to share the incremental cost,” said CC Wei, chief executive, TSMC"

I’m surprised that the Chips Act doesn’t prohibit that.

Well, If the customer wants a guarantee that a product will be built in a particular geography that is a premium service vs. “Fab it wherever you have capacity as long as you hit my schedule and volume” which gives TSMC more flexibility.

2 Likes