Apple supplier TSMC delays 4nm chip production at Arizona factory due to worker shortage.

Apple supplier TSMC delays 4nm chip production at Arizona factory due to worker shortage.

TSMC Faces Delays in Chip Manufacturing Plant Due to Worker Shortage


Apple’s supplier, Taiwan Semiconductor Manufacturing Company (TSMC), is facing a setback in its plan to build a chip manufacturing plant in Arizona. The company intended to manufacture chips for Apple, but the project is experiencing a delay due to a shortage of skilled workers in the United States. TSMC now anticipates that the mass production of 4-nanometer chips will be postponed until 2025.

Building a semiconductor factory requires expertise, but TSMC is struggling to find qualified individuals with experience in constructing such facilities in the United States. As a solution, TSMC may have to temporarily bring in experienced technicians from Taiwan to assist with the construction, causing a delay in production. TSMC Chairman Mark Liu acknowledged the challenges they are currently facing during this critical phase.

Initially, expectations were high for TSMC’s Arizona plant, with reports indicating that it would commence manufacturing 4-nanometer chips for Apple as soon as it opened its doors in 2024. This delay in production has the potential to impact Apple’s device release plans for 2024. Apple and other suppliers have been eagerly anticipating the ability to source chips domestically, reducing reliance on overseas manufacturers. However, they might now have to wait a bit longer.

Furthermore, TSMC has plans to construct an adjacent facility that will produce even more advanced 3-nanometer chips specifically for Apple. The upcoming iPhone 15 models and future M3-series chips are expected to be built on TSMC’s 3-nanometer node. However, the initial production of these chips will still rely on TSMC’s Taiwanese factories.

The delay in chip production is a setback for TSMC’s plans to increase its manufacturing presence within the United States. However, it is worth noting that the shortage of skilled workers is not unique to TSMC. The semiconductor industry as a whole is experiencing this challenge. The demand for skilled workers in the field is high, and the availability of experienced talent is limited.

TSMC’s decision to bring temporary technicians from Taiwan shows their commitment to resolving the issue and continuing progress towards establishing a strong manufacturing foothold in the United States. Although there may be a delay, TSMC’s dedication to expanding their operations domestically remains unwavering.

In conclusion, TSMC’s chip manufacturing plant in Arizona is facing a delay in mass production of 4-nanometer chips for Apple due to a worker shortage. The company is encountering challenges finding skilled workers in the United States, leading to the possibility of temporary technicians being brought in from Taiwan. This delay could impact Apple’s device plans for 2024. However, TSMC has further plans to manufacture 3-nanometer chips for Apple in an adjacent facility. Despite the setback, TSMC is committed to establishing a strong manufacturing presence in the United States. The shortage of skilled workers in the semiconductor industry is a broader challenge, and TSMC’s efforts to address it reaffirm their commitment to meeting the demand for advanced chip technology.