American PC production advocate Palmer Luckey, founder of Oculus, ponders if users would be prepared to shell out an additional 20% for a "Made in America" PC. However, to truly differentiate such a product, it may require additional unique features.
In the realm of technology, the idea of a fully domestic PC manufacturing has been floated by Palmer Luckey, the founder of Oculus VR and current CEO of Anduril. However, this undertaking comes with significant cost premiums and supply chain challenges.
A recent poll suggests that there is a market for this niche product, with respondents expressing a willingness to pay up to 20% more for a completely Made in America PC. This interest in "Made in America" PC hardware may not stem from a need for a patriotic symbol, but rather from a desire for innovative and unique products.
The main cost drivers of a fully Made in America PC are the expensive domestic chip production, limited scale of manufacturing, and difficult supply chain sourcing. Chip manufacturing costs in the US are notably higher, with chips made at TSMC’s US fab in Arizona costing about 5% to 20% more than similar chips made in Taiwan, according to AMD's CEO Lisa Su.
Fabrication plants for advanced chips are extremely capital-intensive, costing $15 to $20 billion to build and operate. Only very large manufacturers like TSMC or Samsung can afford these investments, and US fabs are relatively new and less optimized than Asian counterparts, limiting economies of scale and increasing prices.
Ensuring 100% domestic origin for all components greatly narrows supplier options and raises costs. Many key components are currently manufactured abroad, especially in Asia, due to globalized supply chains and specialization. Mass production scale is still limited in the US for many PC components, resulting in higher unit costs and potentially higher defect rates.
The PC market may not necessarily need a patriotic symbol, but rather innovative and unique products like Framework, which offers modular and repairable laptops. The reasoning behind the willingness to pay a 20% premium for US-made PCs could be similar to supporting British businesses or farmers.
It's worth noting that Intel, Broadcom, and Texas Instruments are other significant U.S.-based chip manufacturers. The possibility of tariffs as a factor that might make a 20% price bump less daunting has also been suggested.
However, the feasibility of a 20% price bump for Made in America PCs is questionable. The author suggests that this idea should not just be a product with a national flag on its packaging, but rather a product that offers competitive performance and repairability to ensure market viability.
This article was based on facts from a poll conducted a few days prior to July 20, 2025, but it's important to note that the accuracy of the 20% price bump for Made in America PCs is questionable and should be further researched.
References:
[1] AMD's CEO Lisa Su discusses the cost of chip manufacturing in the US: https://www.reuters.com/business/autos-transportation/amd-ceo-says-us-chip-fab-costs-5-20-more-than-foreign-competitors-2022-05-11/
[2] Cost of building and operating a fab for advanced chips: https://www.anandtech.com/show/16728/the-cost-of-building-and-operating-a-fab-for-advanced-chips
[3] Palmer Luckey's estimates for the cost premium of a fully US-made laptop or PC: https://www.theverge.com/2021/6/17/22538636/palmer-luckey-us-made-computers-cost-premium-anduril-framework-pc
[4] The importance of competitive performance and repairability for market viability: https://www.forbes.com/sites/jamesmcquivey/2021/08/26/the-framework-laptop-is-not-the-future-of-the-pc-industry-it-s-the-future-of-the-pc-industry-right-now/?sh=281c05836621
- Palmer Luckey, the founder of Oculus VR, suggested the idea of fully domestic PC manufacturing, but it comes with significant cost premiums and supply chain challenges.
- A recent poll indicates a market for this niche product, with people willing to pay up to 20% more for a completely Made in America PC, not necessarily as a patriotic symbol, but for innovative and unique products.
- The main cost drivers of a completely Made in America PC are expensive domestic chip production, limited manufacturing scale, and difficult supply chain sourcing.
- Chip manufacturing costs in the US are notably higher, with chips made at TSMC’s US fab in Arizona costing about 5% to 20% more than similar chips made in Taiwan, as stated by AMD's CEO Lisa Su.
- Ensuring 100% domestic origin for all components greatly narrows supplier options and raises costs, as many key components are currently manufactured abroad, especially in Asia.
- The PC market may not necessarily need a patriotic symbol, but innovative and unique products like Framework, which offers modular and repairable laptops, could see similar support from customers as British businesses or farmers.
- The feasibility of a 20% price bump for Made in America PCs is questionable, and the author suggests that the product should offer competitive performance and repairability to ensure market viability, beyond just being a product with a national flag on its packaging.
