An enterprise that processes silicon wafers to make chips is not a self-sufficient production unit; it requires not only engineering communications, but also a rhythmic supply of consumables and chemicals. Manufacturers of the latter are not yet ready to actively invest in the construction of enterprises in Arizona, given the problems with the implementation of local projects by Intel and TSMC.
It is generally accepted that the US Department of Commerce will use US President Joseph Biden's imminent visit to Arizona to announce subsidies for the construction of TSMC and Intel plants. The latter company also expects to receive government support for the construction of two advanced plants in Ohio, so Intel management is looking forward to the announcement of the US government's decision on the amount of subsidies provided under the Chip Act.
As the Nikkei Asian Review found out, many suppliers of consumables and chemicals, who at the first stage expressed their readiness to localize the production of their products in Arizona in order to supply local Intel and TSMC plants with them, have taken a wait-and-see approach due to the delay in the implementation of projects of these companies in the state. Some are ready to build their enterprise in Arizona, but limit its initial productivity; other chemical suppliers are generally ready to refrain from localizing production in this state. Some companies have so far taken a wait-and-see approach; fortunately, they will be able to build their enterprises in just a few months, when it becomes clear what the needs of client enterprises for specific types of products will be.
The profit margins of the same chemical manufacturers are not so great that it would be profitable to build a small plant in Arizona. Moreover, several manufacturers surveyed by Nikkei reported a manifold increase in the costs of building such enterprises in the United States. Not only is the implementation of such a project several times more expensive than in Asia, but also the estimate over the course of a couple of years has increased several times relative to the original one. Inflation has made construction materials more expensive, and the influx of investment projects into Arizona has created a labor shortage in the construction business. As a result, some suppliers of the chemicals required to make chips simply concluded that it was more profitable at this stage to supply them from abroad than to build a plant in Arizona. US environmental regulations are also forcing some Asian suppliers to incur additional compliance costs, dampening their enthusiasm for the prospect of localizing production. Suppliers of chemicals can only wait for subsidies from the US authorities after their distribution among chip manufacturers is completed, but the costs of the latter are also growing, so there may not be enough money for everyone.
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