The economics of advanced semiconductor manufacturing in the US differ sharply from those in Taiwan, and TSMC's experience in Arizona is underscoring how difficult that gap is to bridge. Analysts say higher depreciation per wafer and elevated labor costs are placing sustained pressure on margins at the company's US fabs, even as production ramps up.
China's domestic foundry expansion gained momentum this week as Nexchip Semiconductor broke ground on its Phase IV project in Hefei, committing CNY35.5 billion (approx. US$5.07 billion) to expand 12-inch wafer capacity and deepen its position in mature-node manufacturing.
Indian OSAT players aim for price competitiveness on par with Malaysian rivals, as L&T Semiconductor is scheduled to announce products at CES.
