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TSMC Delays Arizona Chip Factory Production, Citing Skilled Labor Shortage

By July 21, 2023March 25th, 2025No Comments

By Amy Edelen | Phoenix Business Journal

Taiwan Semiconductor Manufacturing Co. is pushing back the production start date at its Arizona computer chip factory by a year, citing a shortage of skilled labor, the company said on its second quarter earnings call Thursday.

TSMC was anticipating that it would begin its N4 semiconductor processing at its first Arizona fab by 2024, but it’s lacking the workers to install equipment at the site, which is currently under construction in north Phoenix.

“Our fab in Arizona started construction in April 2021 with an aggressive schedule. We are now entering a critical phase of handling and installing the most advanced and dedicated equipment,” Mark Liu, chairman of TSMC, said on the earnings call. “However, we are encountering certain challenges, as there is an insufficient amount of skilled workers with those specialized expertise required for equipment installation in a semiconductor grade facility.”

TSMC is working to improve the situation, including “sending experienced technicians from Taiwan to train local skilled workers for a short period of time,” Liu said.

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