TSMC’s U.S. 4nm chip factory is five times more expensive and iPhone prices still have to rise?

At the end of last year, the completion ceremony of the first wafer fab built by TSMC in the United States was held. This is one of the symbols of the renaissance of American manufacturing. Apple CEO Cook and many other heavyweight business figures came to congratulate and stated that they would be among the first batch of wafer manufacturers to purchase products from the United States. Produce manufactured chips and be proud of them.

However, the cost of TSMC's production of advanced process chips in the United States is much higher than that of production in Asia. This is obviously not conducive to Apple's control of product prices. The prices of iPhone and other products will have to rise.

Regarding this issue, at the recent financial report meeting, Apple CEO was also asked how he viewed the problem that the cost of producing chips in the United States is higher than that of TSMC's domestic production. However, Cook avoided this question and responded silently, without talking about how to solve it.

There is not much time left for Apple. TSMC’s first U.S. factory will be put into production in 2024, and Apple’s purchases will be fulfilled next year.

According to TSMC’s plan, they will build at least two large-scale wafer fabs in the United States. Fab 1 was originally scheduled to be a 5nm process, but it will eventually produce a 4nm process and will be mass-produced in 2024. The second wafer fab will produce a 3nm process. Mass production in 2026.

TSMC previously stated in its financial report meeting that the significant increase in the cost of building a factory in the United States is mainly related to infrastructure, and the cost of building a factory is four to five times higher than that in the United States.

These costs include labor, licensing, occupational safety and regulations, as well as inflation in recent years, personnel learning curves, etc.