You can hop in a car and visit them. In the US they are across the Pacific and in a very different/inconvenient timezone. It's a 15 hour gap. 9 am in Arizona would be midnight in Taiwan. And there's the anti meridian running through that so it's a day later over there as well. And the business days barely overlap.
I bet all that adds some friction in day to day operations. Lost time, shipping delays, miscommunication, etc. There are solutions to this, of course. But I'm sure that adds complexity to an already complex business. So, limiting that overhead to just 5-20% sounds pretty good to me.
Semiconductor companies need gross margins of around 65% to grow and be able to invest in development of the next node. So this large additional variable cost really can’t be shrugged off as you suggest. If so, Ms. Su wouldn’t have mentioned it at all.
>TSMC’s new Arizona plant is already comparable with those in Taiwan when it comes to the measure of yield — the amount of good chips a production run produces per batch — Su told the audience at the forum.
[1] https://srgexpert.com/wp-content/uploads/2023/07/The-cost-of... [2] https://publications.turnerandtownsend.com/international-con...
https://www.nytimes.com/2025/05/04/us/high-speed-rail-califo...
The assertion is that EV fires are not particularly more difficult than ICE vehicle fires if the battery has not entered thermal runaway.
Most EV fires do not start in the battery (at least for EVs that are not involved in a collision).
And while the battery certainly can enter thermal runaway by an external fire heating it up sufficiently, it's not a given as real-world examples like the Sola fire shows as well as various research. Here are some quotes from a paper about full-scale EV fire tests[1]:
In both cases the fire ignition took place in the rear seats. However, it has to be mentioned that in the case of the BEV, the battery was not involved in the fire for the first 800 s (full voltage in all cells of the battery).
However, the test also showed that although the vehicle had already burned for more than 10 min, the battery was still not involved in the fire and the temperature inside the battery was well below 50 °C
In the tests they forced thermal runaway after a while, by shorting the batteries.
Here's[2] another, smaller study where they tried to initiate a thermal runaway by placing a propane burner under the battery, but failed as they removed it too soon.
The burner was in place for 12 minutes, at which point the rest of the car had caught fire which also contributed to heating the battery. Yet no thermal runaway occurred.
Modern cars, EVs and ICEs alike, have more flammable material in the form of plastics than in their batteries or gas tanks[3]. And those plastics also release a lot of toxic smoke when burning. Sure, if the battery catches fire it will release nasty HF gas, but it's not like fumes from an ICE fire is healthy stuff.
[1]: https://www.sciencedirect.com/science/article/pii/S037971122...
[2]: https://www.fireproductsearch.com/full-scale-electric-vehicl...
[3]: https://www.europeanfiresafetyalliance.org/wp-content/upload...
The fundamental problem is that battery fires get to be very high temperatures 1200C and cannot be extinguished at that point. I think the distinction you’re making about presence of thermal runaway or not is really rather irrelevant because yes you can put that fire out. That’s not the problem. The problem is that the devices do runaway and when they do it’s very difficult to put them out.
The ship in the original article was abandoned because it the fire could not be extinguished. The battery fire at Moss Landing could not be extinguished for 2 weeks.
Here’s a great video of the MountainView Fire Department talking about the difficulties of putting out EV fires. They explain that they’ve had cars catch on fire again 6 days later. They purchased new specialized equipment but at the time their department was one of the only fire companies that had this in California.