Taiwanese Chip Maker Delays Arizona Project

The Taiwan Semiconductor Manufacturing Company moved back the estimated start of production at its Arizona factory from 2024 to 2025 over a shortage of skilled workers.

During a second-quarter earnings call Thursday, TSMC Chairman Mark Liu announced the delay at its advanced microprocessing plant in Phoenix.

“We are encountering certain challenges, as there is an insufficient amount of skilled workers with those specialized expertise required for equipment installation in a semiconductor-grade facility,” Liu said.

“While we are working to improve the situation, including sending experienced technicians from Taiwan to train the local skilled workers for a short period of time, we expect the production schedule of N4 process technology to be pushed out to 2025,” he added.

Liu did not detail a change in the timeline for a second Arizona facility planned to begin producing in 2026, first revealed in December during a visit to the Phoenix factory by President Joe Biden.

His visit was part of a United States effort to ramp up domestic chip production due to fears of a Chinese invasion of Taiwan, which produces over 60% of the world’s semiconductors and over 90% of the most advanced ones.

Last year, the Biden administration and Congress passed the CHIPS and Science Act, a massive piece of legislation aimed at creating a public-private partnership and new incentives for semiconductor makers.

TSMC’s decision to construct a new factory and raise its investment in Arizona from $12 billion to $40 billion was central to it. However, the factory’s delay risks a huge trial to the time-sensitive project.

The company said Thursday its profits fell by around 23% in the three months to the end of June compared to the same time last year. Meanwhile, TSMC also forecasts a 10% drop in sales this year.