You know where plants are much cheaper to construct? Asia
Ongoing construction at the Intel Ocotillo campus of two new semiconductor wafer manufacturing plants being built as part of the American Chips Act
Citing chip industry executives briefed on the matter, the report points the finger at rising costs of building materials and labor, as well as a shortage of construction workers to actually build the facilities. Nikkei claims the cost of building a plant in Arizona is now four or five times what it would be in other parts of the world such as Asia and several times higher than these companies had expected to spend at the outset.
However, slower than expected progress by Intel and TSMC on their chip fabrication facilities might also be factors in delaying the supplier projects.back in 2021 that it planned an expansion of its Ocotillo campus in Chandler with an additional two factories on the site, but construction of these is said to have proceeded slower than was expected., which it blamed on the weakness of the semiconductor market and the slow pace of signing off CHIPS Act funding.
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