TSMC Delays Arizona Chip Production

Facts

On Thursday, Taiwan Semiconductor (TSMC) said it had to delay the start of production at its Arizona plant due to a shortage of skilled workers.¹
The US chipmaking giant had reportedly planned to begin chip manufacturing at the plant next year, but now it says the production will start in 2025.²
Shares of TSMC closed more than 3% lower in Taiwan on Friday after the world’s largest contract chipmaker flagged a 10% drop in 2023 sales and confirmed a delay in production.³
The firm — which announced plans to build a facility in Arizona in 2020 — said in 2022 that it would more than triple its investment in the project to $40B making it one of the largest foreign investments in US history.¹
The construction of a second factory in Phoenix, which could start this year and get ready by 2026, is expected to produce 3nm chips — the smallest and most complex processors currently available.⁴

Pro-establishment narrative, as provided by Bloomberg. Large-scale programs, such as TSMC’s semiconductor factory, often encounter delays. The tight labor market and the need for workers with high-tech skills explain why the chipmaker is having problems finding specialist workers. The administration is confident that the CHIPS and Science Act will enable it to meet TSMC’s needs and ensure that the US remains competitive in the global semiconductor market.
Establishment-critical narrative, as provided by New York Times. The US was the world leader in chip production for decades. However, today it increasingly relies on imported computer chips. The ongoing trade dispute between the US and China complicates a difficult situation. If the US wants to stimulate demand for semiconductors and regain its position as a leading chip producer, it must first address the shortage of skilled labor.