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TSMC delays start of Arizona chip factory that will build Apple chips

TechnologyTSMC delays start of Arizona chip factory that will build Apple chips

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Workers at TSMC Semiconductor Manufacturing Facility in Phoenix, Arizona, on December 6, 2022.

Brendan Smialowski | AFP | Getty Images

Taiwan Semiconductor Manufacturing Company will delay production at its new Arizona-based chip plant to 2025 due to a shortage of skilled labor, the company’s chairman said on the company’s second-quarter earnings call Thursday.

Apple has said it plans to use computer chips built at TSMC’s Arizona facilities.

TSMC Chairman Mark Liu told analysts on an earnings call Thursday that the company does not have enough skilled workers to install advanced equipment at the facility on its initial timeline. The company previously anticipated that it would begin making 5-nanometer chips in 2024.

Liu said the company is working to send trained technicians from Taiwan to train local workers to help accelerate installation.

The U.S. has embarked on a major push to bring semiconductor manufacturing back stateside, including through funding the multi-billion dollar Chips and Science Act to turbocharge development. The pandemic highlighted the significant dependence the U.S. has on countries like Taiwan to develop computer chips, creating a national security risk and giving the U.S. less control over the supply chain.

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WATCH: A first look at TSMC’s giant 5-nanometer chip fab being built in Phoenix

A first look at TSMC's giant 5-nanometer chip fab being built in Phoenix

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