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As chip sales slump, inflation makes the price of Samsung's Texas fab blow out
The Register ^

Posted on 03/17/2023 9:48:41 AM PDT by FarCenter

Semiconductor foundry operators including TSMC, Samsung, and Intel have collectively announced well in excess of a $100 billion in new factory projects across the US, but chipmakers could end up paying far more than due to rising inflation.

Reuters, citing multiple unamed sources, reports that Samsung's Texan foundry in the town of Taylor could end up costing more than $25 billion, a full $8 billion more than when the project was announced in 2021.

The sources pointed to higher material and labor costs driven primarily by inflation — roughly 80 percent of the increases — for the facility's rapidly ballooning price tag. And it may not end there, the sources also warned that the prices could rise even further if the chip plant is delayed again.

The news won't come as a surprise to anyone who's been following US fab builds over the past year. Intel was among the first to admit that building fabs in the US would be much more expensive than originally thought. Last summer the x86 giant said it partnered with a private equity firm to offset the extreme cost of its two new Arizona chipmaking plants.

Announced in early 2021 by newly instated CEO Pat Gelsinger, Intel had originally cited the cost at $10 billion apiece. However by late 2022, that figure had increased by a factor of 50 percent.

...

However, it isn't just Intel. By December, TSMC announced it would spend $40 billion to build not one but two foundries at its site in Arizona. When TSMC first announced the facility in 2020, it estimated the cost of one fab at $12 billion. However due to a "range of construction costs and project uncertainty in Phoenix makes building the same advanced logic wafer fab in Taiwan considerably less capital intensive," executives said at the time.

By February 2023, TSMC had added another $3.5 billion to the project's price tag.


TOPICS: Business/Economy; News/Current Events
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1 posted on 03/17/2023 9:48:41 AM PDT by FarCenter
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To: FarCenter

The WEF wants these plants dead....................


2 posted on 03/17/2023 9:49:52 AM PDT by Red Badger (Homeless veterans camp in the streets while illegal aliens are put up in hotels.....................)
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To: FarCenter

The Shortage of NEON gas brought on by the Ukraine War means that it is not available to focus the aperture for the lasers that etch these chips.

We may soon go into a long-term chip shortage. They should be building a NEON plant first.


3 posted on 03/17/2023 10:09:02 AM PDT by MMusson
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To: Red Badger

>> The WEF wants these plants dead

But the WEF wants everyone to have a transhumanist bioimplant pod... that’s gonna take a lot of chips!

Caught between the horns of a duhlimma!


4 posted on 03/17/2023 10:14:20 AM PDT by Nervous Tick (Truth is not hate speech.)
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To: FarCenter
chipmakers could end up paying far more than due to rising inflation.
Will someone from the White House/ Biden administration/Fed please inform them they have experts handling inflation. Besides that inflation is down. Just ask mumbles.
5 posted on 03/17/2023 10:42:20 AM PDT by lewislynn ( Trump accomplished more for America in one 4yr term than any President in your lifetime)
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To: Nervous Tick
But the WEF wants everyone to have a transhumanist bioimplant pod.

The WEF also wants the human population reduced to 500,000,000. That reduces, by an order of magnitude, the number of chips required.

6 posted on 03/17/2023 10:48:57 AM PDT by NorthMountain (... the right of the peopIe to keep and bear arms shall not be infringed)
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To: NorthMountain

“The WEF also wants the human population reduced to 500,000,000.”

Doing a crappy job so far, we’re at 8 billion and still growing.


7 posted on 03/17/2023 11:09:53 AM PDT by Roadrunner383
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To: FarCenter

An example of what inflation does to the economy.


8 posted on 03/17/2023 11:14:09 AM PDT by minnesota_bound (Need more money to buy everything now)
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To: Roadrunner383

What do you think the Wuhanic Plague, the pFizer/Moderna plague, the war on coal and oil, and the war on farming are all about?


9 posted on 03/17/2023 11:15:38 AM PDT by NorthMountain (... the right of the peopIe to keep and bear arms shall not be infringed)
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To: FarCenter

How about bangin’ out some extra ICE vehicle chips so we won’t get stranded?


10 posted on 03/17/2023 11:55:29 AM PDT by Libloather (Why do climate change hoax deniers live in mansions on the beach?)
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To: NorthMountain

Digital currency by the fed has passed in every red state that has voted o. It, I think.
This would finish off any remaining freedoms… indeed would introduce federal slavery and obedience.


11 posted on 03/17/2023 11:57:32 AM PDT by momincombatboots (BQEphesians 6... who you are really at war with)
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To: FarCenter

5nm and smaller are very expensive.
One EUV machine alone is 100m and you need more than one.


12 posted on 03/18/2023 10:36:00 AM PDT by Zathras
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To: FarCenter

Pull them out, lock them out, stay inside. Done.


13 posted on 03/19/2023 11:37:42 AM PDT by DrGunsforHands
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To: DrGunsforHands

Oops, wrong thread.


14 posted on 03/19/2023 11:38:14 AM PDT by DrGunsforHands
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