Taiwan-based semiconductor chip maker TSMC has announced a delay in the opening of its new production plant in Arizona. This delay is a result of a shortage of skilled workers. The decision was made due to difficulties in installing advanced equipment necessary for the plant’s operation in a timely manner. TSMC Chairman Mark Liu mentioned in a recent earnings call that the company, which is a major supplier for Apple, plans to address this shortage by sending skilled workers from Taiwan to the United States. In addition to worker shortages, operating in Arizona is proving to be more expensive than producing the chips in Taiwan. The delay in the Arizona plant opening is notable as Apple had previously expressed interest in using chips produced at this facility. This decision by TSMC also poses a setback for the Biden administration’s efforts to increase semiconductor production in the United States. The CHIPS Act, signed into law by President Joe Biden in 2022, aims to incentivize domestic semiconductor manufacturing to strengthen supply chains within the country. Furthermore, it is a reminder of the heavy dependence on East Asia for semiconductor supply chains, which became evident during the COVID-19 pandemic when the U.S. automotive industry experienced a chip shortage.
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