TSMC delays $40B Arizona chip factory again – Construction Dive
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Despite a labor union deal last month, the Taiwanese chip maker highlighted skilled labor shortages and access to government funding as lingering issues.
UPDATE: Jan. 19, 2023: Taiwan Semiconductor Manufacturing Co. announced on Thursday a delay in the construction of a second plant within its $40 billion Arizona project.
Despite TSMC’s recent agreement with the Arizona Building and Construction Trades Council, the semiconductor giant is still dealing with a shortage of skilled workers as well as issues with securing U.S. government funding, Chairman Mark Liu said during an earnings call.
Due to these reasons, Liu said yesterday that TSMC will push back the timeline for production at its second factory from 2026 to either 2027 or 2028, according to the company. The firm had already postponed production at the site’s initial factory from 2024 to 2025.
Original story follows below.
Labor shortages continue to pose a threat to the manufacturing boom, despite billions in both public and private investments pouring into onshoring construction.
For advanced manufacturing projects, this challenge is further aggravated, since many of these projects demand an even more advanced level of expertise for safe completion. As the largest single foreign direct investment in Arizona’s history, TSMC will feature the most advanced semiconductor process technology in the U.S., according to the joint statement.
However, the deal in Arizona between TSMC and the Arizona Building and Construction Trades Council shows signs of progress.
“Arizona Building and Construction Trades Council union members have the critical skills necessary to help us complete our two advanced-chipmaking fabs,” said Brian Harrison, TSMC Arizona president. “We look forward to embarking together on a new chapter of partnership and collaboration.”
The deal consists of four main parts:
“[The] agreement is a win for Arizona’s workers and the construction timeline of TSMC Arizona,” said Butler. “Arizona Building and Construction Trades Council and TSMC Arizona have shown that when we come together to focus on our workers and developing the skills of the future, our state has much to gain.”
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While projects of this scope and size often get mired in litigation, knowing the process from the get-go can help minimize conflicts, attorneys say.
Even with high interest rates, most of the country’s top home builders have held steady or improved their closing numbers, according to Builder magazine’s annual ranking.
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While projects of this scope and size often get mired in litigation, knowing the process from the get-go can help minimize conflicts, attorneys say.
Even with high interest rates, most of the country’s top home builders have held steady or improved their closing numbers, according to Builder magazine’s annual ranking.
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