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this post was submitted on 09 Aug 2024
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American labor is 50% more expensive than in Taiwan. The US doesn't have the skilled labor necessary to expand capacity. The attrition rate is high at 40% because the semiconductor market competes with other industries for the same labor, and American workers don't like the work culture. To retain workers, American fabs need to bid up prices. Semiconductors produced in the US will need to pass on their costs onto consumers, and demand for the final product is affected by prices, not just utility. Passing on costs onto consumers, governments subsidies will probably still be necessary many years into the future.