TSMC Postpones Starting Production at Its Arizona Factory

The chipmaking company Taiwan Semiconductor (TSMC) will be delaying the start of production at its Arizona-based facility.

The organization said it will not be able to begin manufacturing chips in 2024, as originally expected, because of a skilled worker shortage, according to BBC News. Company chairman Mark Liu added that the production of advanced microprocessors at the Arizona factory will now begin in 2025 at the earliest.

“While we are working to improve the situation, including sending experienced technicians from Taiwan to train the local skilled workers for a short period of time, we expect the production schedule of N4 process technology to be pushed out to 2025,” Liu said during a July 20 earnings presentation. “The short-term frenzy about the A.I. demand definitely cannot extrapolate for the long term. Neither can we predict the near future — meaning next year — how the sudden demand will continue or flatten out.”

During the same presentation, TSMC said that it expects sales to drop by 10% in 2023 due to slower demands for semiconductors. Additionally, the company announced profits fell by 23% year-on-year during the recent quarter that concluded June 30, 2023.

TSMC first unveiled plans to build two Arizona-based semiconductor manufacturing facilities in 2020. At the time of that announcement, Liu said the Arizona plants would be operational by 2024 and 2026, respectively.

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• Source: https://www.supplychainbrain.com/articles/37743-tsmc-postpones-the-start-of-production-at-arizona-factory