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It’s no secret that the US government’s push towards reducing the reliance on Taiwan for semiconductors, amidst the Chinese government’s threat, led to the establishment of a new TSMC fab in Phoenix, Arizona. However, the company is reportedly facing major skilled labour shortages, which has led to a delay in the manufacturing of 4nm chips to 2025.
This decision comes after TSMC initially announced plans to begin production in 2024, following President Biden’s signing of the CHIPS and Science Act, which would provide the company with a substantial $15 billion in tax credits.
However, during a recent earnings call, TSMC Chairman Mark Liu revealed that they are facing a shortage of skilled workers with the specialized expertise required for equipment installation in a semiconductor-grade facility in Arizona. As a result, TSMC plans to temporarily import technicians from Taiwan to train local workers and has also established a task force of experienced workers to aid the process.
Moreover, the recent surge in demand for high-performance chips in AI applications has further highlighted the need for new fabrication units in the United States. Nevertheless, CEO Che Chia Wei expressed confidence that the situation will improve by the end of the following year.
The US government’s response
Despite this delay posing concerns about the United States’ plans to achieve self-reliance in semiconductors, the government remains optimistic about addressing the worker shortfall. However, the delay may present challenges for companies that had already placed orders for chips from the Phoenix plant, including Apple, which intended to incorporate 4nm and 3nm chips produced at the facility into future iPhones and Macs.
Moreover, to get the manufacturing process back on track, TSMC is further collaborating with the government to maximize the subsidies and tax credits available under the CHIPS Act, which would cover the first five years of increased premiums associated with semiconductor manufacturing in the United States.
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