AMD CEO states manufacturing microchips in US coasts lot more than in Taiwan

(MENAFN) Lisa Su, CEO of US tech company AMD, has acknowledged that manufacturing microchips in the United States can cost up to 20% more than producing the same chips in Taiwan. Despite the higher expense, she argued the premium is justified by the need for a resilient supply chain, especially after the disruptions seen during the COVID-19 pandemic.

Su made the comments during an AI conference in Washington and later reiterated the point in an interview with Bloomberg Television, saying the cost difference is “more than 5% but less than 20%.” She emphasized that security and supply continuity are critical for high-tech sectors like semiconductors.

The US has been striving to reduce its dependence on Asian-made chips, particularly from Taiwan, as part of its broader strategy to counter China in the tech sphere. In 2022, President Joe Biden signed legislation committing $280 billion to boost domestic semiconductor manufacturing. More recently, AMD and former President Donald Trump announced a $100 billion initiative to construct five new chip plants in the US.

Taiwan Semiconductor Manufacturing Company (TSMC), a major chip supplier to AMD, began shifting part of its production to Arizona in 2020. But the company has cited serious obstacles in its US operations, including high construction expenses, a lack of skilled workers, and logistical complications.

Meanwhile, Washington has tightened export controls on high-end chips—especially those used in artificial intelligence—to limit China’s access to the most advanced technologies. In response, China has intensified efforts to develop its own domestic chip industry.

The backdrop to these tensions includes Taiwan’s political status. Governed independently since the late 1940s, Taiwan is viewed by Beijing as part of China. While China says it prefers peaceful reunification, it has warned it will use force if Taiwan formally declares independence.

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