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Fabricate can make items with raw materials:

Material Component: The original material, which costs the same amount as the raw materials required to craft the item to be created.

Now, if one have the Ignore Components Feat:

Benefit: You may cast spells without any material components. This feat does not affect the need for a focus or divine focus.

So in a superficial reading, it seems that you can create stuff out of nowhere.

There are opposing opinions on this old GiTP thread.

Without further ADO, does fabricate modified by Ingore Material Components creates stuff out of nowhere?

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Fabricate’s wording here is rather awkward; the original materials are both target and material component, are both converted into a finished product, per the rules of the spell, and consumed as part of the casting, per the rules for material components.

As written, you could actually argue that fabricate requires twice as much material as you need for the finished product, one to target and convert, and the other to use as material component and consume. If you accept this interpretation, then Ignore Components would eliminate the second set of materials needed for the component, but you would still need one set to target.

I’ve never heard of anyone running fabricate that way, and while I can almost buy it (fabricate is extremely powerful, after all; giving it a 100% up-charge might be better-balanced), ultimately if that were what was going on I would expect the spell rules to really explicitly indicate that. Like I said, no one seems to have come to that conclusion.

Which means that the consensus is that fabricate implicitly does some kind of weird conflation of target and material component. How that works is not spelled out by the rules, and is basically an unconscious houserule. Targets and material components are not normally the same thing and the rules don’t really specify what happens when they are—which means you could argue that yes, Ignore Components eliminates the need for the materials, which are both material component and target.

But I think a far more fair reading would say that even if Ignore Components eliminates the need for the material as material component, it does nothing for the need to target the materials, nor for the line that

Casting requires 1 round per 10 cubic feet (or 1 cubic foot) of material to be affected by the spell.

Ignore Components doesn’t touch that, and should still be in force even if the material component aspects of the spell are erased.

Thus, in conclusion, my answer would be “No, you cannot use fabricate to produce goods from thin air with the Ignore Components feat.”

I would also just comment that I do not think a balance-based argument here holds much merit: this is an epic feat we are talking about; balance does not exist in the epic rules, and so there is no particular reason to expect balance from them here.

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From Fabricate

You convert material of one sort into a product that is of the same material. Creatures or magic items cannot be created or transmuted by the fabricate spell. The quality of items made by this spell is commensurate with the quality of material used as the basis for the new fabrication. If you work with a mineral, the target is reduced to 1 cubic foot per level instead of 10 cubic feet. You must make an appropriate Craft check to fabricate articles requiring a high degree of craftsmanship.

The way I see it, you can not create anything since you are limited to converting/transmuting existing material of a specific type into the same type with the added workmanship. In other words, you could make nothing made of nothing which could be of a craftsmanship equal to your rank in the appropriate craft skill.

Even if you could bypass the first sentence of the spell, you would end with a something that is of the same quality as nothing. Depending on your DM that might not be a good quality for your something to have or it could be the best since nothing is really perfect at being nothing which would give you a perfect quality.

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