TSMC Delays Arizona Production

by Carolyn Mathas

Taiwan Semiconductor (TSMC) delayed the start of production at its factory in Arizona. Citing a shortage of skilled workers, TSMC will no longer start production next year but will likely begin in 2025.

The challenge comes down to the Arizona facility manufacturing advanced microprocessors, requiring “specialized expertise for equipment installation in the semiconductor-grade facility. TSMC is in the process of sending experienced technicians from Taiwan to train the local skilled U.S. workers.

In addition, TSMC is looking at a 10% drop in sales this year based on slower demand for semiconductors. The company said its profits fell by around 23% to the end of June compared to last year.

 TSMC first announced plans to build a facility in Arizona in 2020, during the presidency of Donald Trump. Initially, TSMC said the first of its two semiconductor production facilities at the Arizona plant would be operational by 2024, with the second coming online by 2026.

Last year, President Biden signed legislation committing $280bn to high-tech manufacturing and scientific research in the U.S. The investment included tax breaks for companies that built computer chip manufacturing plants in the country.

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