AMD CEO Sees Chips From TSMC’s US Plant Costing 5%-20% More

In a recent statement, AMD CEO Lisa Su revealed that chips sourced from TSMC's upcoming manufacturing facility in Arizona will cost 5% to 20% more compared to those produced in TSMC's existing factories. This price difference is attributed to the higher operating costs associated with the new US-based plant. The Arizona facility, which is expected to begin production in 2024, is part of TSMC's efforts to expand its global footprint and reduce reliance on its facilities in Taiwan. While the increased costs may impact AMD's profitability, the company remains committed to working with TSMC to ensure a reliable supply of semiconductor chips to meet the growing demand. This development highlights the challenges and trade-offs involved in the semiconductor industry's ongoing efforts to diversify manufacturing locations and build resilient supply chains, balancing cost considerations with the strategic benefits of having production capabilities in different regions.