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TSMC will not be manufacturing chips in Arizona as planned. A company in Taiwan delay The first factory in Phoenix, Arizona, will begin producing 4-nanometer chips in 2024-2025. There are not enough skilled workers to complete construction on schedule, said Chairman Mark Liu. The company is considering sending engineers from home to help complete the project.
The Arizona facility is a highlight of the CHIPS and Science Act President Biden signed into law last year. The measure, intended to boost domestic semiconductor manufacturing, includes $52.7 billion in funding and tax credits for companies building factories in the state. Requested by TSMC $15 billion tax credit It expects to invest a total of $40 billion in two factories in Arizona.
The federal government is not immediately concerned about labor shortages. White House Representative Olivia Dalton said in her statement that CHIPS and the provisions of the Science Act would ensure “the workforce we need.”
The delay still poses problems for tech companies that rely on TSMC’s manufacturing, especially Apple. Future iPhones and Macs will use 4nm and 3nm chips made in the Phoenix factory. If delays persist, Apple may have to delay product launches or turn to alternative manufacturers. Intel plans to begin chip production in 2024 and is pouring $20 billion into two facilities in Arizona that won’t necessarily meet Apple’s needs.
This lag presents one of the key challenges in bringing more technology manufacturing to the United States. There is no shortage of money or desire, but fewer workers are trained for the job compared to Taiwan and other major production hubs.Apple contractor Foxconn, for example, may find it easy to find factory workers in China, but they not so common in the United States. Factories like the Mac Pro factory in Austin tend to focus on niche products that don’t require large numbers of employees.
Still, there is pressure to keep TSMC’s factories up and running. Such moves are expected not only to boost the U.S. economy, but also to diversify manufacturing out of China. The effort could address the issue of working conditions and limit any possible deterioration in U.S.-China relations. It won’t solve all the problems (many parts and raw materials also come from China), but it might mitigate the impact of political drama.
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