In a recent interview with Bloomberg Television, Lisa Su, the CEO of AMD, shed light on the increased cost of US-made chips from Taiwan Semiconductor Manufacturing Company (TSMC) compared to those produced in Taiwan. Su stated that chips manufactured at TSMC’s new Arizona plant could cost between 5% to 20% more than their Taiwanese counterparts. Despite the higher price tag, Su emphasized that the premium is justifiable due to the importance of diversifying the global supply chain for semiconductor chips.
The push for domestic semiconductor manufacturing in the United States has gained momentum, with the US government implementing tariffs and incentives to encourage local production. The Arizona plant, owned by TSMC, is a significant part of this initiative, with other chip fabs planned across various states in the country. Su highlighted the importance of resilience in the supply chain, especially in light of disruptions experienced during the pandemic.
The Arizona facility is expected to start producing chips by the end of the year, contributing to the efforts to reduce reliance on overseas manufacturing for critical components. Su noted that the new plant’s yield, a crucial measure of production efficiency, is already comparable to TSMC’s facilities in Taiwan. This development signifies progress in establishing a robust semiconductor industry within the US.
While the increased cost of US-made chips may pose a challenge for manufacturers and consumers, the long-term benefits of a diversified and resilient supply chain cannot be overlooked. Su’s insights underscore the strategic importance of balancing cost considerations with supply chain security in the semiconductor industry.
In a competitive landscape dominated by players like Nvidia, AMD’s efforts to navigate the complexities of the semiconductor market while engaging with government officials and policymakers reflect a proactive approach to securing its position in the industry. By investing in domestic manufacturing and advocating for favorable conditions, AMD aims to strengthen its foothold in the rapidly evolving tech sector.
As the semiconductor industry continues to evolve, the balance between cost-effectiveness, supply chain resilience, and technological innovation will remain critical factors shaping the future of chip manufacturing. AMD’s strategic decisions and insights offer valuable perspectives on navigating these challenges and opportunities in the dynamic realm of semiconductor technology.
#AMD #Semiconductors #SupplyChainResilience #NexSouk #AIForGood #EthicalAI
References:
1. TechSpot. “AMD CEO Lisa Su says US-made TSMC chips cost up to 20% more – but they’re worth it.” [https://www.techspot.com/news/108791-amd-ceo-lisa-su-us-made-tsmc-chips.html]
2. PCWorld. “AMD says US-made Ryzen chips will cost 5-20% more.” [https://www.pcworld.com/article/2857885/amd-says-us-made-chips-cost-5-20-more.html]
3. Slashdot. “AMD CEO Sees Chips From TSMC’s US Plant Costing 5%-20% More.” [https://news.slashdot.org/story/25/07/24/2030244/amd-ceo-sees-chips-from-tsmcs-us-plant-costing-5-20-more?utm_source=rss1.0mainlinkanon&utm_medium=feed]
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