The harsh and expensive reality of setting up chip factories in the United States

The semiconductor industry is in an intense race as countries seek to build new advanced factories, known as fabs, to meet the growing technological drive.

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Taiwan stands out in this area, being able to complete the construction of a factory in approximately 19 months. In contrast, the process in the United States takes up to 38 months.

This disparity is due to a more efficient permitting system in Taiwan and the lack of continuous construction in the U.S. and Europe.

Why does it cost almost twice as much to build in the U.S. as in Taiwan?

The costs associated with the construction of these plants are also significant. Building a fab in the U.S. is approximately twice as expensive as in Taiwan, due to higher labor costs and more extensive regulatory requirements.

The difference in the need for documentation and the experience of the Taiwanese workforce, which can operate with fewer detailed plans, also contributes to this situation.

For the U.S. and Europe to compete effectively, it is crucial to optimize permitting processes and adopt more efficient construction techniques. Executive Herbert Blaschitz from Exyte suggests the implementation of advanced planning tools such as “digital twins” and “virtual commissioning,” which allow for the identification of issues before physical construction, thereby reducing costs and environmental impact.

A state-of-the-art plant requires an investment exceeding 20 billion dollars, with between 4 to 6 billion allocated solely for the structure. The construction process involves a monumental amount of work, with between 30 to 40 million work hours, 83,000 tons of steel, 5,600 miles of electrical wiring, and 785,000 cubic meters of concrete.

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For these reasons, efficiency in construction and establishment times have become crucial aspects in this industrial race.