News AMD CEO says U.S.-made TSMC chips are more expensive, but worth it — costs 'more than 5% but less than 20%' higher than Taiwan-sourced alternative

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IMO a 10% price increase for U.S. produced products isn't unreasonable. Some companies however like to exploit customers by increasing prices 25+% which will likely cost them customers.
 
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Where do we get wafers? Where do we get the chemicals? The machines they are made on are imported. The only aspect that is going to be American made is that the final processing happens in the USA. Kind of like many cars. Everything is sourced overseas, but assembled here...

We really need to get rid of the regulations that prevent America from doing the from ground to grave of these things.
 
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It's interesting. Look at car plants: Ford, GMC, they close car plants here, move production to Mexico and your car costs the same...

So maybe it's not a bad idea to move everything back to North America and make your car still cost the same.

And I think they can do this with other items also, like processors. Bring them back, keep the price the same and lower your profits a bit.
 
vanadiel007 said:
It's interesting. Look at car plants: Ford, GMC, they close car plants here, move production to Mexico and your car costs the same...

So maybe it's not a bad idea to move everything back to North America and make your car still cost the same.

And I think they can do this with other items also, like processors. Bring them back, keep the price the same and lower your profits a bit.
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The reason they move the production and the cost remains the same is they try to absorb the cost of doing it in America until it is unbearable, and in order to keep prices low, they have to move to lower cost places. You can look at their profits and see they are not making massive amounts of money off their expenses. The simple math required you learn in grade school.
 
A Stoner said:
Where do we get wafers? Where do we get the chemicals? The machines they are made on are imported. The only aspect that is going to be American made is that the final processing happens in the USA. Kind of like many cars. Everything is sourced overseas, but assembled here...

We really need to get rid of the regulations that prevent America from doing the from ground to grave of these things.
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The high purity ingots and wafers come from Japan. AFAIK Japan produces something like 80~95% of the high purity ingots and wafers.

The chemicals are produced locally, near the fabs because the chemicals (eg high purity Hexafloride) are highly volatile and have a shelf life measured in days. Hexafloride can also be used in nuclear weapon making, so it has export controls and it's not something you can easily buy from another country. Nor would you want to because said short shelf life and purity requirements.
 
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A Stoner said:
The reason they move the production and the cost remains the same is they try to absorb the cost of doing it in America until it is unbearable, and in order to keep prices low, they have to move to lower cost places. You can look at their profits and see they are not making massive amounts of money off their expenses. The simple math required you learn in grade school.
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Yes, that must be it. I also have a bridge for sale, barely used and in perfect condition.
 
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It doesn't actually matter where these wafers are being processed they need the volume. TSMC still doesn't have any advanced packaging in the US which means most, if not all, of the finished wafers are being shipped across the Pacific. The supply chain still is what it is and until more of it is within the US processing wafers isn't a notable improvement.
 
Inevitable move, as US production is infinitely more stable politically than the Taiwan situation, and therefore very desirable. Ideally, we have both sources, but no one knows what's next in China. She mentions the ultra importance of the supply chain situation, too, as the US is also working to cut its China-dependence on rare earth minerals. I've wanted to see this move since it was announced by the Trump administration during his first term, when it seemed like a distant mirage--and now it's finally bearing fruit. I think we are on the eve of US manufacturing renaissance--and it should not be forgotten that products manufactured in America have no tariffs attached. A good deal all around!
 
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Mr Majestyk said:
Of course it's worth it, she's not paying the price, higher costs are born by the consumer, profit margins will never shrink.
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If they sell worse because they are more expensive then they will make less money if profit margins per unit are the same.
They will dump prices even faster than with previous gens and that will lower their profit margins so that they can make some money from volume, they have to because they already booked all their volume from tsmc, they can't just lower production if the demand is lower.

Or if all goes well, since they have a low volume anyway, people are going to be suckers and are going to buy all the volume at full price.
 
Plus you dont have to worry about your IP being stolen or spy chips being hidden on your tech.
 
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