TSMC delays start of U.S. factory expected to supply chips to Apple, Nvidia, and AMD

TSMC is also working on sending trained technicians from Taiwan to train local workers to help speed up the work of equipment installation. 

TSMC is also working on sending trained technicians from Taiwan to train local workers to help speed up the work of equipment installation. 
| Photo Credit: Reuters

TSMC is delaying the start of 4nm chip production at its new facility based in Phoenix, Arizona, to 2025. The world’s biggest chipmaker blamed the delay on labour shortages, and an insufficient amount of skilled workers with the expertise in the installation of semiconductor-grade factories, a report from The Wall Street Journal said.

The chipmaking factory, which began construction in 2021, was projected to start producing chips next year. The factory is expected to supply chips to Apple, Nvidia, and AMD. A second factory producing smaller, more complex 3nm chips is expected to open in 2026.

During the company’s Q2 earnings call, chairman Mark Liu said the company was “encountering certain challenges as there is an insufficient amount of skilled workers with specialised expertise required for equipment installation in a semiconductor-grade facility” in the U.S., the report said.

The company is also working on sending trained technicians from Taiwan to train local workers to help speed up the work of equipment installation.

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The Taiwanese chipmaker forecast a 10% drop in 2023 sales, after reporting a fall in second-quarter earnings as global economic woes dented demand for chips used in cars, cellphones, and servers.

TSMC, however, expects third-quarter revenue to pick up to around $16.7 billion-$17.5 billion, from 15.68 billion in the previous quarter. The company also flagged robust demand for its 3nm technology.

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