HomeTechnologyChip Maker TSMC Delays Start of Production in Arizona Plant Until 2025

Chip Maker TSMC Delays Start of Production in Arizona Plant Until 2025

Taiwan chip maker TSMC announced earlier this week that it would delay the start of production at its Phoenix, Arizona plant. The company previously planned to start producing 5-nanometer chips in 2024 but has now pushed the date to 2025.

TSMC announced the plans to start production of 5-nanometer semiconductors in 2024 at its $12 billion factory back in 2021. The chip maker then committed to open a second plant in the state last year, with the value of its U.S. investment rising to $40 billion. It will mark one of the largest foreign investments in U.S. history.

However, things haven’t gone smoothly for TSMC as expected. The company’s chairman Mark Liu told analysts during an earnings call on Thursday that the production delay is caused by a lack of “skilled workers” that can install the necessary equipment for the production start.

Liu added that TSMC is working on speeding things up and will send workers from their Taiwan plants to give the necessary training to the U.S. technicians.

TSMC’s decision to push back production for one year might have an impact on Apple, considering the company previously announced it will use TSMC chips manufactured in the U.S. for its future products. The iPhone maker might be forced to either bring its own production to a halt or to find alternative suppliers.

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