TSMC has finally shared its plans regarding the troubled Arizona plant. The facility was supposed to open a long time ago, but the deadlines have continuously been pushed back. Meanwhile, the project costs have soared, and the factory is expected to struggle with profitability.
The opening of TSMC’s first U.S. chip production plant is now postponed until the second half of 2025, with further delays possible. The plant will manufacture chips using a 4-nanometer process, but these chips will cost at least 30% more than those produced in Taiwan.
TSMC has raised concerns about the low skill levels of American workers and the sky-high operational costs in the U.S. Additionally, labor unions are suing TSMC over the company bringing in specialists from Taiwan. The U.S. faces a severe shortage of engineers, making it difficult to find qualified staff.
The 4nm process, originally planned for 2026, may already be outdated by the time it’s launched. Following these challenges, TSMC has decided against building factories outside Taiwan for chips using a 2nm process or better. The full impact of President Biden’s import substitution program is becoming clear, with $400 billion spent and minimal results.
While the U.S. does need some chip factories to prepare for potential conflict in Asia, the ambitious goal to capture 20% of the global chip market has failed. Forty percent of high-tech projects funded by the Democrats have either been frozen or delayed. Intel, once an industry leader, now finds itself in a state of crisis, representing the struggles facing the entire U.S. semiconductor sector.
Sources:
https://wccftech.com/tsmc-arizona-set-to-begin-4nm-production-in-h2-2025/
