TSMC predicts delays, less advanced chips at second Arizona fab

Enlarge / US President Joe Biden speaks during a "First Tool-In" ceremony at the Taiwan Semiconductor Manufacturing Co. facility under construction in Phoenix, Arizona, US, on Tuesday, Dec. 6, 2022. TSMC today announced plans to boost its investment in the state to $40 billion and construct a second production facility, following major customers urging the Taiwanese chipmaker to build more advanced semiconductors in the US. (credit: Bloomberg / Contributor | Bloomberg)

President Joe Biden's plan to expand America's command of the global chips market hit another setback Thursday when Taiwan Semiconductor Manufacturing Company (TSMC) Chairman Mark Liu announced that he anticipates significant delays at the company's second chips plant in Arizona.

This news follows previous delays announced last year at TSMC's first chips plant, which Liu partly blamed on US workers lacking specialized skills. At Thursday's news conference, Liu "reiterated" those complaints, Bloomberg reported, claiming that TSMC is still struggling to hire skilled workers in Arizona.

According to Liu, TSMC's second Arizona plant—which is supposed to become the most advanced facility in the US—likely won't start volume production of advanced chips until 2027 or 2028. That's potentially two years longer than initial projections suggesting that production would start in 2026.