Semiconductor Giant Faces U.S. Delays While Racing Ahead in Japan amid Biden Chips Funding Uncertainty

A major Taiwanese chip manufacturer’s plan to build a key factory in the U.S. has been plagued with significant delays. Meanwhile, the chipmaker is on schedule to open a separate facility in Japan.

One of the plants Taiwan Semiconductor Manufacturing Company (TSMC) is building in Arizona has delayed manufacturing until 2027 or 2028 instead of 2026 because of uncertainty regarding funding it will receive from President Joe Biden’s administration, according to The New York Times. TSMC’s factory in Japan is on track to operate on schedule as the country’s government has helped the factory by committing billions in funding and assisting with assembling thousands of employees to build it, the WSJ reported.

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Semiconductor Company Claims Arizona Factory Will Start Production in 2025 as It Sees Biggest Profit Drop Since 2019

The Taiwan Semiconductor Manufacturing Company (TSMC) said it is on schedule to begin production at its first Phoenix facility in the first half of 2025 during a Thursday earnings call. During the call, TSMC also revealed its greatest drop in profit since 2019.

TSMC reported a third-quarter profit of about $6.69 billion during Thursday’s earnings call, according to CNBC, which explained the company saw its “largest profit decline” since early 2019, but still “bested” expectations of stock analysts who predicted worse numbers amid weakened demand for consumer electronics following the end of the COVID-19 pandemic.

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‘Almost Half’ of Phoenix TSMC Workers Were Reportedly Sent from Taiwan

Nearly half of hired workers for the new Taiwan Semiconductor Manufacturing Company (TSMC) plant in Phoenix, Arizona are reportedly Taiwanese nationals assigned to the new facility, and are not American citizens or local to Arizona, according to a new report published by the Financial Times on Wednesday.

The troubled TSMC installation has been touted as a major achievement of President Joe Biden and congressional Democrats, but the Financial Times reveals that “almost half of those hired so far are assignees sent from Taiwan,” quoting two sources familiar with TSMC.

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TSMC Reportedly Delays Equipment Deliveries to Arizona Semiconductor Factory

The Taiwan Semiconductor Manufacturing Company (TSMC) is reportedly asking vendors to delay deliveries of major equipment to its facility in Arizona. This comes after TSMC delayed the opening of its Arizona chip facility until 2025, and amid reports the company will not manufacture complete semiconductors in the United States.

TSMC is asking manufacturers of high-end semiconductor equipment to hold off on deliveries to its Arizona facility, according to a report released Friday by Reuters. The Taiwanese semiconductor giant is reportedly concerned about decreasing costs, and is “increasingly concerned” about cooling consumer demand, though the company referred to the report as a “market rumor” in a statement to Reuters.

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Arizona TSMC Factory Will Ship Incomplete Semiconductors to Taiwan for Final ‘Packaging’: Report

A new report claims the Taiwan Semiconductor Manufacturing Company (TSMC) will only complete part of the chip manufacturing process at its controversial Arizona facility. The company reportedly intends to ship incomplete products made in Arizona to Taiwan, where they will be finished and sold to major electronics manufacturers in the West.

The report, published Monday by New Information, claims sources close to the company and its new facility in Phoenix have already been informed that the plant will be used to create partially complete products. As a result, the outlet explained, TSMC’s Arizona factory will do little to create an independent supply of semiconductors based in the United States.

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Biden Releases New Arizona Ad Touting ‘Manufacturing Boom’ Despite Taiwan Semiconductor Manufacturing Co. Delay

President Joe Biden launched a new ad in Arizona on Labor Day touting a “manufacturing boom” as part of a $25 million advertising campaign in battleground states, even after the Taiwan Semiconductor Manufacturing Company (TSMC) recently delayed its new Phoenix microchip plant claiming the state lacks skilled talent.

The 30-second ad features Phoenix resident Bill Ruiz, according to The Hill, who brags that “we’re building some of the biggest tech factories in the world right here” in Arizona, and specifically lists new semiconductor factories as an example, ultimately crediting “the laws that Joe Biden got passed” for making their construction possible.

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Report: Arizona to Add 700K Jobs by 2030, Triple the U.S. Rate

Arizona’s economic conditions are estimated to attract hundreds of thousands of new workers to the state.

A report from the Arizona Office of Economic Opportunity indicated the state’s economic growth is expected to outpace the national average.

“The Office of Economic Opportunity (OEO) is projecting Arizona employment to increase to 3,751,905 jobs in 2030 from 3,030,216 jobs in 2020,” the report said. “This represents growth of 721,689 jobs, or 2.2% annualized growth. By comparison, United States employment is projected to grow by 0.7% annually from 2020 to 2030.”

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