A plan to ramp up the United States' chip development may soon be seeing a stalemate, as it was recently announced by the renowned foreign chip company, Taiwan Semiconductor Manufacturing Company (TSMC), that it is expecting delays. These claims from the TSMC center on a similar delay experienced by the chip industry's shortage before, taking years before its stocks returned to normal.
This chip manufacturing delay centers on TSMC's second Arizona fabrication plant, affecting the development of the 3-nanometer process and other next-gen processors.
TSMC Claims Delays in Arizona Plant Production
SAM YEH/AFP via Getty Images
In a new report by Bloomberg, the recent claims by TSMC's Chairman Mark Liu announce their forecasted delays to experience on its chip manufacturing ventures moving forward. In Liu's words, the second Arizona plant that it established would not likely start its volume production of the advanced chips until 2027 or 2028, around three to four years from now.
This delay also extends around two years from its earlier claims that 2026 would be its starting date.
Additionally, the report claimed that TSMC is facing hardships in hiring skilled workers in the said second plant.
Bloomberg further regarded that these delays may lead to TSMC lagging behind its competitors by one generation, with the US being highly affected by its foreign competition.
Ars Technica added that as per Liu, TSMC's production of the renowned 3-nanometer process would only see its production on the second Arizona plant come 2026. Moreover, the TSMC Arizona plant would not be able to determine "the specific chip type" that its second fabrication would produce until 2028.
Currently, there are no semiconductor companies or manufacturing plants have been approved for their funding under the famed CHIPS Act.
The Renowned TSMC Chip Development
Back when TSMC was planning to open a new manufacturing plant in the United States, particularly the second plant in Arizona, the Taiwanese company received massive support from the government for its ventures here. Among the goals of producing advanced chips in the country, TSMC was also tasked to help improve the US's position in the global chip market against foreign competitors.
For Arizona's hosting of this massive chip development from the different companies looking to establish its footing, including TSMC, there was a massive $52 billion budget for semiconductor manufacturing and research. It came from President Joe Biden's new strategy that aims to maintain the US' position in the economic and technological advancements to get ahead of China.
TSMC's next-in-line development is the further exploration and improvements towards offering the 3nm process, with its largest partner, Apple, looking to apply it to its renowned M-series and further upcoming devices. However, the present is not too kind to TSMC as it faces challenges in its quest to develop the new chips, including their planned next-generation ones, with its Arizona plant taking a hit.
