Fabs are like swimming pools. You fill them up and then the water is re-used over and over.
Also, this would be a far better use of water than the other stupid things done with water in Arizona. Massive amounts of water are wasted in Arizona to grow alfalfa for the Saudis. Just stop that massive waste and take a tiny fraction of that water for fabs.
Wildfire is mainly an issue for the WUI (Wildland Urban Interface) which I don't think have a tremendous impact for the factory locations. Power shutoffs is for the lines that traverse these areas which I hope is mitigated as part of the planning.
I think they previously got another 5 billion that was either a grant or a loan, news reports say different things. But they can apply for up to 25% of the 65 billion as a tax credit from the treasury so it makes it very appealing. Plus, TSMC wants to diversify their political and war risk. Hence, why they were set for building a fab in Japan in addition before this, and Japan is a NATO member.
It also disincentivizes a Chinese invasion because China really wants those advanced fabs and EUV machines. There was a report a long time ago that they basically boxed up a fab and shipped out of Taiwan.
Japan is not a NATO member. NATO membership is an Atlantic alliance. There is no NATO equivalent on the Pacific sphere although the USA has been encouraging such an alliance to offset China. Japan does have a defense pact with the United States, but an attack on Japan would not result in a NATO response.
And being sourced from a NATO member is not good enough for supply chain security in case of a war. Would you rely on parts from, say, Estonia (which IS a NATO member) in case of a war with Russia? It could be overrun within hours. Only US-based suppliers are really good enough, and that might even EXCLUDE Guam or Hawaii in case of a war with China for example. Or even Alaska.
I mean they don't have monopoly and control, there are a lot of advanced players and more coming with Intel broadening it's scope. TSMC is the market leader but the contenders are increasing.
This is good news. However, the US Chips act is rather weird. Last read there was a 'profit' clause whereby not only does the company pay back the money but it pays it back more if there are profits. Gotta love the Politicians and Lawyers.
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Threska - Monday, April 8, 2024 - link
Fortunately no earthquakes to drive up costs.Oxford Guy - Monday, April 8, 2024 - link
Its a good thing these things don't need water.Blastdoor - Tuesday, April 9, 2024 - link
Fabs are like swimming pools. You fill them up and then the water is re-used over and over.Also, this would be a far better use of water than the other stupid things done with water in Arizona. Massive amounts of water are wasted in Arizona to grow alfalfa for the Saudis. Just stop that massive waste and take a tiny fraction of that water for fabs.
Jedi2155 - Wednesday, April 24, 2024 - link
There are also an astounding number of green golf courses in Arizona. Last time I flew over Phoenix, all the green I saw were basically for Golf.meacupla - Monday, April 8, 2024 - link
TSMC Arizona fab is in a wildfire zone.The surrounding cities have various degrees of wildfire, flooding, and drought issues.
Jedi2155 - Wednesday, April 24, 2024 - link
Wildfire is mainly an issue for the WUI (Wildland Urban Interface) which I don't think have a tremendous impact for the factory locations. Power shutoffs is for the lines that traverse these areas which I hope is mitigated as part of the planning.GeoffreyA - Tuesday, April 9, 2024 - link
Very fortunate indeed.tafreire - Monday, April 8, 2024 - link
It's still very little money if the US wants to become the largest chip producer in the world.tafreire - Monday, April 8, 2024 - link
A modern chip factory costs much more than US$6 billion.RedGreenBlue - Monday, April 8, 2024 - link
I think they previously got another 5 billion that was either a grant or a loan, news reports say different things. But they can apply for up to 25% of the 65 billion as a tax credit from the treasury so it makes it very appealing. Plus, TSMC wants to diversify their political and war risk. Hence, why they were set for building a fab in Japan in addition before this, and Japan is a NATO member.RedGreenBlue - Monday, April 8, 2024 - link
It also disincentivizes a Chinese invasion because China really wants those advanced fabs and EUV machines. There was a report a long time ago that they basically boxed up a fab and shipped out of Taiwan.Reflex - Wednesday, April 10, 2024 - link
Japan is not a NATO member. NATO membership is an Atlantic alliance. There is no NATO equivalent on the Pacific sphere although the USA has been encouraging such an alliance to offset China. Japan does have a defense pact with the United States, but an attack on Japan would not result in a NATO response.ct760ster - Friday, April 19, 2024 - link
Japan is a member of RIMPACpeevee - Thursday, April 25, 2024 - link
Japan is NOT a NATO member.And being sourced from a NATO member is not good enough for supply chain security in case of a war. Would you rely on parts from, say, Estonia (which IS a NATO member) in case of a war with Russia? It could be overrun within hours. Only US-based suppliers are really good enough, and that might even EXCLUDE Guam or Hawaii in case of a war with China for example. Or even Alaska.
Blastdoor - Tuesday, April 9, 2024 - link
The idea is not to give TSMC a free fab. The idea is to lower the cost enough to make it worthwhile for them to make the investment.kfishy - Tuesday, April 9, 2024 - link
Are there *any* commercial chips being made in the one operational TSMC US fab that we know of?GeoffreyA - Tuesday, April 9, 2024 - link
"To ensure the U.S. plays a central role creating a more geographically diverse and resilient semiconductor supply chain"Geographically diverse, or monopoly and control?
[email protected] - Tuesday, April 9, 2024 - link
Geographically diverse. See:https://www.youtube.com/watch?v=AJGrdtKT3LM
GeoffreyA - Wednesday, April 10, 2024 - link
"Geographically diverse" is good. I just doubt their idea of that term.Reflex - Wednesday, April 10, 2024 - link
I mean they don't have monopoly and control, there are a lot of advanced players and more coming with Intel broadening it's scope. TSMC is the market leader but the contenders are increasing.[email protected] - Tuesday, April 9, 2024 - link
This is good news. However, the US Chips act is rather weird. Last read there was a 'profit' clause whereby not only does the company pay back the money but it pays it back more if there are profits. Gotta love the Politicians and Lawyers.Reflex - Wednesday, April 10, 2024 - link
How is this not a good thing for taxpayers? The goal is to stimulate economic activity, not to give away free money.Jedi2155 - Wednesday, April 24, 2024 - link
I love that part of the act, good for tax payers indeed.