Jan. 13, 2023 /SemiMedia/ -- According to reports, TSMC said yesterday that the cost of the Arizona fab is about 4 to 5 times higher than that of the Taiwan fab. However, the company’s U.S. fab’s target gross margin will be higher than 25% to ensure profitability.

TSMC stated that factors including labor and various local expenses have increased the cost of TSMC's US fab.

According to sources, TSMC's U.S. fab will receive a large amount of U.S. government subsidies to cover the fab's operating costs.