TSMC delays production at second chip plant in Arizona

Asia Tech Wire (Jan 19) -- TSMC, the world's largest contract chipmaker, has delayed volume production at its second chip plant in the U.S. state of Arizona.

TSMC Chairman Mark Liu revealed at an earnings conference on Thursday that the company's second chip plant in Arizona will go into production in 2027 or 2028, later than the previously expected 2026.

The company had announced in July last year that it was delaying its first chip plant in Arizona due to a lack of skilled labour and higher costs. TSMC expected the plant to be on track to mass-produce 4nm chips in the first half of next year.

Liu, who will retire this year, said at the conference that the company is continuing to talk to the U.S. government about incentives and tax breaks, among other things.

He reiterated the challenges TSMC has faced in hiring in Arizona, saying the company is continuing to communicate with local unions.

Liu also announced that TSMC will inaugurate on 24 February 2024 its chipmaking plant in Kikuyo town, Kumamoto Prefecture, Japan.

The Japanese plant is due for mass production in the fourth quarter of 2024 using TSMC's 12-, 16-, 22-, and 28-nanometer process technologies.

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