TSMC: Chip plans for 2024 and 2025 will be delayed

TSMC: Chip plans for 2024 and 2025 will be delayed

New York, 7/21/2023

TSMC, the world’s largest custom chip maker, is finding it difficult to find skilled workers for its Arizona facility. This means that the chip production planned for 2024 and 2025 will be delayed. This was announced by CEO Mark Liu in a conference call.

Liu said the company is working to send skilled technicians from Taiwan to train local workers and expedite the installation of the equipment.

Operating costs in Arizona are higher compared to chip production in Taiwan, he noted.

Apple, a major customer of TSMC, plans to use chips made at the Arizona plant, as do Nvidia and AMD. It’s the first time in nearly a decade that Apple has sourced chips in the US to bid farewell to manufacturing in Asia.

TSMC previously announced plans to begin production of 4-nanometer chips at its Arizona facility in 2024. A second factory, scheduled to start up in 2026, will produce the smallest and most advanced 3-nanometer chips.

Apple is expected to use the 4nm and 3nm processes for certain future M-series and A-series chips for iPhones, Macs, iPads and more.

Overall, TSMC plans to invest at least $40 billion in its US capacity. The goal is to produce 600,000 wafers annually by 2026, enough to meet all of the US’s need for advanced microchips.