Comment Optimistic at best, Fraud at Worse. (Score 1) 126
And honestly, it is closer to the latter.
$20 billion sounds like a lot until you compare it to the reality of building a modern semiconductor fab. TSMC has already spent several times that on its Arizona fab, and it is still not operating at full capacity.
Why? Because the hard part is not just construction. It is the supply chain.
Take water, for example. Semiconductor manufacturing requires ultra pure water, but water chemistry varies by location. In Phoenix, TSMC had to design and build a bespoke purification system tailored specifically to local conditions. That is not a one off problem. It is the norm.
Or chemicals. The US does not produce some of the ultra pure acids required for advanced chipmaking. Those still have to be imported from Taiwan. And that is just scratching the surface. There are hundreds of highly specialized inputs and processes that have to align perfectly.
This is why ground-up industrial ecosystems are forming around TSMC’s Arizona site, backed by billions in private investment. Suppliers are willing to commit because TSMC has decades of credibility and long term sales already locked in.
So the real question is not whether someone can spend $20 billion (but probably *much* more.)
It is whether they can build and sustain the entire ecosystem required to make that investment actually work.
Ignoring the lack of chip-making talent existing in Elon Musk's companies, Do you really think he can pull that off?
Safe bet: Not a chance.
$20 billion sounds like a lot until you compare it to the reality of building a modern semiconductor fab. TSMC has already spent several times that on its Arizona fab, and it is still not operating at full capacity.
Why? Because the hard part is not just construction. It is the supply chain.
Take water, for example. Semiconductor manufacturing requires ultra pure water, but water chemistry varies by location. In Phoenix, TSMC had to design and build a bespoke purification system tailored specifically to local conditions. That is not a one off problem. It is the norm.
Or chemicals. The US does not produce some of the ultra pure acids required for advanced chipmaking. Those still have to be imported from Taiwan. And that is just scratching the surface. There are hundreds of highly specialized inputs and processes that have to align perfectly.
This is why ground-up industrial ecosystems are forming around TSMC’s Arizona site, backed by billions in private investment. Suppliers are willing to commit because TSMC has decades of credibility and long term sales already locked in.
So the real question is not whether someone can spend $20 billion (but probably *much* more.)
It is whether they can build and sustain the entire ecosystem required to make that investment actually work.
Ignoring the lack of chip-making talent existing in Elon Musk's companies, Do you really think he can pull that off?
Safe bet: Not a chance.