Chip giant delays Arizona production in blow to Biden
Taiwan Semiconductor (TSMC) has delayed the start of production at its Arizona factory, a blow to President Biden’s technology plans.
Because of a shortage of skilled workers, chip manufacturing will not start next year.
There are plans to bring more chip production to the US from the White House.
There has been an ongoing trade dispute between Washington and Beijing over technology.
On Friday, shares of TSMC closed more than 3% lower in Taiwan.
TSMC Chairman Mark Liu announced Thursday that production of advanced microprocessors will begin in 2025 at its Arizona factory in the south west of the US.
Liu said the plant, which has been under construction since April 2021, was facing a shortage of workers with “specialised expertise required for equipment installation in semiconductor-grade facilities.”
In addition, he said the company was “working to improve the situation by sending experienced technicians from Taiwan to train the local skilled workers”.
Because of slower semiconductor demand, TSMC also forecast a 10% drop in sales this year.
As compared to the same time last year, profits fell by around 23% to 181.8bn Taiwanese dollars ($5.8bn; £4.5bn) in the three months to June.
A Taiwanese chip giant invests $40 billion in a US plant
Donald Trump was president when TSMC first announced plans to build a facility in Arizona.
Earlier this year, the company announced it would triple its investment to $40 billion (£31.1 billion). In American history, this was one of the largest foreign investments.
As of then, Mr Liu said the first of TSMC’s two semiconductor production facilities would be operational by 2024, while the second would follow in 2026.
In a long-running technology dispute, the US has imposed a series of measures against China’s chipmaking industry while investing billions to boost America’s.
The US produces about 10% of the world’s computer chips, which are essential to everything from cars to mobile phones. The country accounted for almost 40% of global production in 1990.
President Biden signed legislation last year committing $280 billion to high-tech manufacturing and scientific research.
Tax breaks were provided to companies that built computer chip manufacturing facilities in the country as part of the investment.