TSMC, the Taiwan-based semiconductor firm, has announced a delay in its chip manufacturing in Arizona. The commencement of its 4-nanometer chip production in Phoenix, Arizona’s first factory, has been shifted from 2024 to 2025. The firm cited an insufficiency of skilled labor to complete the construction promptly, as reported by Chairman Mark Liu. To resolve this, the company contemplates assigning technicians from Taiwan to expedite the project’s completion.
The Arizona facility embodies a significant aspect of the CHIPS and Science Act endorsed by President Biden last year. This Act is designed to escalate domestic semiconductor production, promising $52.7 billion in funds and tax credits for companies establishing factories in the US. TSMC is aiming for $15 billion in tax credits for its two Arizona facilities, while expecting to invest a total of $40 billion in the state.
The White House, represented by Olivia Dalton, does not express immediate concern regarding the labor shortage. The CHIPS and Science Act provisions, Dalton states, will ensure the necessary workforce is procured.
However, the delay presents issues for tech firms heavily reliant on TSMC’s manufacturing, with Apple being a significant player. The next-gen iPhones and Macs are slated to use 4nm and 3nm chips produced in the Phoenix factories. If the delay persists, Apple might need to either postpone product launches or rely on alternative manufacturers. Intel’s investment of $20 billion in two Arizona facilities, scheduled to initiate chip production in 2024, may not cater to Apple’s specific requirements.
This delay highlights one of the main obstacles in enhancing tech manufacturing in the US. Despite substantial funding and ambition, there is a gap in the number of workers trained for these roles, in contrast to countries like Taiwan, which host major production hubs. For instance, Foxconn, an Apple contractor, has easier access to factory workers in China, but this is not the case in the US. Factories in the US, like the Mac Pro factory in Austin, tend to specialize in niche products requiring fewer employees.
Nevertheless, there’s an urgency to operationalize the TSMC factories. Actions like these are not only projected to bolster the US economy but also to diversify manufacturing away from China. This could address labor condition issues and minimize potential problems if US-China relations worsen. While these efforts might not resolve every issue (with many components and raw materials still originating from China), they may mitigate complications arising from political tensions.
Please note, all product recommendations by BuyTechBlog are chosen independently by our editorial team, without any influence from our parent company. Some of our articles may contain affiliate links. If you purchase something through these links, we may receive an affiliate commission. All prices are accurate at the time of publication.
Frequently Asked Questions (FAQs) about TSMC Arizona chip production delay
Why has TSMC postponed chip production in its Arizona factory?
TSMC has postponed its 4-nanometer chip production in its Arizona factory from 2024 to 2025 due to an insufficient number of skilled workers available to complete construction on time.
What measures are being considered by TSMC to address the labor shortage?
TSMC is considering assigning technicians from its home country, Taiwan, to help expedite the project’s completion.
What does the delay mean for tech companies, notably Apple, that depend on TSMC’s manufacturing?
The delay could cause Apple to either postpone product launches or rely on alternative manufacturers. Future iPhones and Macs are slated to use 4nm and 3nm chips produced in the Phoenix factories.
How is the federal government responding to the worker shortfall for TSMC’s Arizona factory?
The White House, represented by Olivia Dalton, does not express immediate concern about the labor shortage. The provisions in the CHIPS and Science Act are expected to secure the necessary workforce.
How does this delay reflect on the challenges of expanding tech manufacturing in the US?
This delay underscores one of the primary challenges in augmenting tech manufacturing in the US – the shortage of skilled labor. Despite substantial funding and desire, the number of workers trained for these roles lags behind countries like Taiwan, which host major production hubs.
5 comments
it’s a tough situation but in the long run its good, more semiconductor manufacturing stateside could help the US become less reliant on other countries… just needs time i guess.
Interesting how a single delay can shake things up, huh? Apple, Intel, everyone’s in the mix! Worth keepin an eye on.
Poor Apple, but what about us customers! Gonna be waiting longer for new iPhones and Macs now huh… not fair, not fair at all!
Looks like Apple is gonna be in a bind, aren’t they? Depending on TSMC and now this delay! They’ll have to scout around for new manufacturers i guess.
Skilled labor shortage? C’mon TSMC, didn’t see that coming? What’s the point of having these factories in the US if we dont have the workforce to run em?