TSMC delays Arizona factory that will eventually build chips for iPhones and AI

Apple has said that it intends to eventually source chips for its iPhones and MacBook models from the Taiwan Semiconductor Manufacturing Company (TSMC) plant in the US, while Nvidia and AMD have also …

The world’s biggest chipmaker is pushing back the start of 4nm chip production at its new facility in Phoenix, Arizona, to 2025, blaming labor shortages. Apple has said that it intends to eventually source chips for its iPhones and MacBook models from the Taiwan Semiconductor Manufacturing Company (TSMC) plant in the US, while Nvidia and AMD have also committed to using its production capacity.The chipmaker’s first Phoenix-based fab, which began construction in 2021, was originally projected to start producing 4nm chips next year. A second fab that will produce smaller, more complex 3nm chips is scheduled to open in 2026. During the company’s Q2 earnings call on Thursday, TSMC chairman Mark Liu said that the company was “encountering certain challenges, as there is an insufficient amount of skilled workers with the specialized expertise required for equipment installation in a semiconductor-grade facility” in the US (seen via The Wall Street Journal).TSMC is sending a task force of experienced technicians from Taiwan to the US to make up for lost timeLiu added that TSMC is planning to temporarily send technicians from Taiwan to train local workers at the new Arizona production plant. Nikkei Asia reported last month on a “task force” of more than 500 experienced workers on the way to help set up specialized equipment while also quoting analysts who said the slow progress is due to weaker market demand for TSMC’s chip production.The chipmaker’s Q2 earnings report showed revenue (NT$480.8 billion or around $15.4 billion USD) down 10 percen …

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