Introduction
TSMC’s ambitious semiconductor fabrication facility in Arizona is encountering unexpected obstacles.
Originally scheduled for an early 2024 launch, the project now faces delays, pushing the start date into an uncertain timeframe in 2025.
These delays are primarily attributed to a scarcity of skilled workers, posing significant challenges to TSMC’s expansion goals in the United States.
TSMC Deploys Skilled Workers to Overcome Arizona Fab Delay
Mark Liu, the chairman of TSMC, acknowledged the situation during the company’s earnings call with financial analysts and investors.
He stated that TSMC is working to address the issue by deploying around 500 of its experienced Taiwanese personnel to assist in the installation of fab tools.
These personnel will also train local workers for a short period to improve the situation.
However, the company recognized the shortage of skilled workers with the specialized expertise needed for equipment installation in a semiconductor-grade facility.
Read More :Intel outsources chip manufacturing to TSMC worth $19 Billion – techovedas
TSMC Fab Faces Construction Delays and Visa Challenges
The construction of TSMC’s Fab 21 phase 1 began in April 2021 and concluded around mid-2022, slightly later than the original plan.
Subsequently, TSMC initiated the equipment installation in December 2022. Traditionally
the cleanroom setup within a fab take about a year, leading TSMC to initially forecast the fab’s online status in early 2024.
To address this, TSMC has been in ongoing negotiations with the U.S. government to secure non-immigrant visas for its Taiwanese specialists.
Fab Delay: Impact on TSMC and Its U.S. Customers
The goal is to have these specialists work in the U.S. and facilitate the fab tools installation and mechanical and electrical systems setup.
The delay may have potential implications for TSMC’s customers in the U.S., such as Apple, AMD, and Nvidia.
While TSMC could re-route orders to its Taiwan fabs, there might be capacity constraints in Taiwan by 2024.
Skilled Worker Shortage Threatens TSMC’s Arizona
Additionally, clients like AMD and Nvidia may hold contracts with the U.S. government, and a year-long production delay could potentially breach those agreements.
TSMC’s decision to establish a fab in it was considered a strategic move to expand its manufacturing capabilities in the U.S. and reduce its dependence on overseas facilities.
However, the shortage of skilled workers has proved to be a significant challenge, prompting TSMC to take action by sending experienced technicians from Taiwan to train local workers.
TSMC delays Arizona fab to 2025, blames labor shortage | Fortunedas
Conclusion
TSMC’s Fab faces a delay in mass production to 2025 due to an insufficient number of skilled workers with the necessary expertise for equipment installation.
Despite the setback, TSMC remains committed to resolving the issue and ramping up production in the U.S.
The delay might impact its customers, but TSMC is actively working to mitigate any adverse effects and meet its contractual obligations.
