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by addicted 816 days ago
This is a myth. Cheap labor is a benefit but not the primary reason companies are manufacturing in the U.S. today.

Look at TSMC. It started setting up US operations years ago and is expecting to complete many years from now.

OTOH they started setting up in Japan about a year or so ago and are already cranking out chips.

3 comments

https://www.bnnbloomberg.ca/tsmc-s-second-fab-in-arizona-del...

TSMC is looking to bail completely on the second fab / even intel is now looking at delaying. The problem we are running into is a lot of DEI language was included in the chips act which is making it hard for TSMC (and Intel) to comply. This is not a good PR move to say this outright so they will just give more generic "labor" shortages etc as the official reason.

The Japanese plant is less ambitious, using an older process on a smaller scale. The fact the Japanese plant was finished first says little about manufacturing in the US vs Japan.
I think you meant “aren’t manufacturing” and you are correct. It’s not cheap labor, except for the lowest end manufacturing. It’s that you can’t build anything in America anymore.

The government needs to address that instead of subsidizing one off efforts.