TAIPEI - Taiwan Semiconductor Manufacturing Company (TSMC) has confirmed a delay in the opening of its second Arizona plant, shifting the timeline from the initially planned 2026 to between 2027 and 2028. The postponement, attributed to ongoing labor shortages and cost increases, was disclosed during an earnings conference in Taipei today. The company also announced that it has yet to determine the type of chips that will be produced at this new facility.
In addition, TSMC revealed that the commencement of chip production at its first Arizona site is now expected in 2025, a year later than previously scheduled. This setback echoes earlier issues encountered at TSMC's inaugural Arizona facility and has significant implications for the Biden administration's Chips and Science Act, which aims to bolster domestic chip manufacturing in the United States.
Despite the delays in the U.S., TSMC's operations in other regions are moving forward as planned. The company's venture in Japan is on track, with production set to begin in late 2024. Apple (NASDAQ:AAPL)'s CEO Tim Cook has stated that Apple will use processors manufactured at TSMC’s Arizona facility once it becomes operational.
TSMC is currently engaged in discussions with U.S. authorities to address tax concerns. The company is seeking tax relief to lessen the financial burden arising from double taxation, a situation stemming from the absence of a tax treaty between the United States and Taiwan. The resolution of these tax issues is crucial for TSMC as it navigates the complexities of expanding its manufacturing presence in the U.S. market.
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