TSMC’s second chip factory in Arizona will also be delayed by at least a year

TSMC’s second chip factory in Arizona is also experiencing delays. Production is expected to start in 2027 or 2028, while 2026 was previously mentioned. The construction of the first factory was previously delayed by a year.

Due to the setbacks with the construction of its first chip factory in Arizona, TSMC has decided to postpone the second factory as well. Chief financial officer Wendell Huang said this in a press conference what Bloomberg writes about. No specific reason for the delay was given, although chairman Mark Liu said the company was still in discussions with the US about the extent of government support and tax breaks. Finding local employees is also proving to be a tricky issue, it is said.

In December 2022, it was announced that TSMC would build a second chip factory in the American state of Arizona. The manufacturer then stated that 3nm chips should be manufactured there from 2026. However, the company now says that the chip type ‘has not yet been determined’ and will depend on customer demand and the amount of the US government subsidy.

TSMC’s first factory in Arizona is expected to open in 2025. Initially, it was planned that production could start this year. TSMC cited a lack of experienced workers in Arizona as the reason for the delay. The company therefore wanted to fly workers from Taiwan, but a number of local unions disagreed. There were also concerns about worker safety, after reports of several accidents. In December, TSMC signed an agreement with the unions, in which the company promised, among other things, to rely on local workers where possible and to improve workplace safety. The chip maker wants to produce 4nm chips in this factory. In total, TSMC is investing $40 billion in the construction of its two American chip factories.