TSMC delays Arizona Plant opening to 2025
According to a recent report, TSMC has pushed back the opening of its Arizona Plant to 2025.
TSMC's initial schedule for its semiconductor foundry in Arizona included the commencement of mass chip production in the coming year. However, the company has recently disclosed a postponement in these plans, with TSMC Chairman Mark Liu stating that the production schedule for the N4 process technology, one of TSMC's 4nm nodes, is now expected to be delayed until 2025.
TSMC delays Arizona Plant opening to 2025
The main challenge faced by TSMC in its Arizona semiconductor foundry project is the scarcity of skilled workers and technicians capable of handling the installation of advanced equipment used in the facility. To address this issue, TSMC is dispatching technicians from its Taiwan factories to assist with the setup process.
Additionally, TSMC has plans for a second plant in Arizona, dedicated to the production of 3nm chips. Initially, the project received a $12 billion investment, and subsequently, an additional $40 billion investment was announced by President Biden and Tim Cook.
As a consequence of the consumer electronics market's slowdown, TSMC is predicting a 10% decline in full-year revenue compared to the previous year, 2022, which follows its first quarterly decrease in net profit since 2019.
However, amidst these challenges, there are positive aspects for the company. TSMC plays a crucial role as a manufacturing partner for prominent GPU makers like Nvidia and AMD. It remains the exclusive producer for some of their most sought-after products, such as AI accelerators. As AI technology continues to be integrated into various products by numerous companies, this positions TSMC advantageously in the market.
Moreover, the company has received substantial chipset orders for the upcoming generation of iPhones and Macs, indicating a promising future despite the current market slowdown.
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