Taiwanese media: The profit of TSMC's U.S. factory is significantly lower than that in Taiwan.

Reference News Network January 6 report: According to the Taiwan Business Monthly, January 5 report, under the global supply chain restructuring and the "Made in America" policy, TSMC is accelerating its expansion in the United States. However, high production costs have formed a significant pressure on profitability. Technology media Wccftech cited data from the U.S. semiconductor research and consulting company, indicating that after establishing a factory in the United States, the gross profit margin per wafer of TSMC is significantly lower compared to Taiwan, mainly due to a sharp increase in labor costs and wafer depreciation expenses.

The report said, according to data compiled by analysts, the labor cost per wafer in TSMC's Taiwan wafer fabrication plant is about $1,800, while in the U.S. wafer fabrication plant it reaches as high as $3,600, double that of Taiwan. The difference in wafer depreciation costs is even more astonishing. The depreciation cost per wafer in the Taiwan plant is approximately $1,500, while in the U.S. plant it reaches as high as $7,289, more than four times that of the Taiwan plant. As a result, the gross profit margin per wafer in the Taiwan plant is about 62%, while in the U.S. plant it is only about 8%, almost just one-eighth.

The so-called wafer depreciation cost refers to the amortization of the construction and equipment investment of the wafer fabrication plant over its useful life. Due to the relatively smaller capacity and utilization rate of the U.S. wafer fabrication plant, even with the same process technology, the fixed costs must be spread over fewer wafers, resulting in higher "fixed costs" per wafer, further eroding the gross profit margin.

The report pointed out that the high labor costs in the United States have also become a heavy burden. In order to support the operation of the U.S. wafer fabrication plant, TSMC has to make a trade-off between hiring local employees and dispatching engineers from Taiwan. No matter which approach is taken, the overall labor costs are clearly higher than those in Taiwan, becoming an important factor affecting operational efficiency.

Original article: toutiao.com/article/7592070408145256987/

Statement: This article represents the personal views of the author.