TSMC looks to double down on U.S. chip factories as talks in Europe falter

Is automotive industry all that EU cares about? What about IoT/robotics? The fact that TSMC want to build only their older fab here is really disappointing to me.

Biden promised $50 billion in subsidies for the industry, the EU does not have that kind of spending power, and (as a European) I'm happy they don't try to out-subsidise them.

Chips are a global industry, so yes, the factories will end up there but we will be able to buy chips subsidised by US tax payers. Many economists would claim that business and citizens would be more likely to efficiently allocate that $50B themselves. The increased tax on businesses in the US is going to hurt their innovation elsewhere in the economy, it just won't be as visible.

Governments picking winning industries has a very spotty track record. Often the industry does not turn out to be as crucial as thought, or subsidies end up in the wrong pockets. Every other generation this lessons needs to be re-learned it seems.

The problem with the chip industry is that it's not really a money maker. Yes you need factories in your own country but this is only because of national security, the actual economic benefit isn't the deciding factor.

The chip shortage is creating an economic incentive to expand production capacity on its own, there is no need for subsidies but countries should accommodate new fabs by making them viable to build them in the first place.

One big problem with fabs is that they need specialized staff, they are not going to employ the average worker.