Taiwan Semiconductor Manufacturing Co. (TSMC) announced another delay to its $40 billion site in Arizona, dealing a further blow to the plan of President Joe Biden's administration to boost manufacturing of critical components on U.S. soil.
Executives said their second plant in Arizona, whose shell is now being built, will start operations in 2027 or 2028, later than TSMC’s prior guidance of 2026. That’s after the company in July announced a delay to the first site, now due to start making 4-nanometer chips only in 2025, citing a lack of skilled labor and higher costs.
"Our overseas decisions are based on customer needs and the necessary level of government subsidy, or support,” Chairman Mark Liu said during TSMC’s earnings conference in Taipei on Thursday. The company’s upbeat outlook for the year drove a rally in chip stocks across Asia on Friday, with TSMC shares up as much as 6.3%.