TSMC won’t hold a completion ceremony for its delayed Arizona chip plant, founder Morris Chang said at National Taiwan University’s anniversary event. The facility’s mass production schedule has slipped to early 2025 from the initial target of late 2024.
The $40 billion Arizona project faces challenges beyond timing. Higher labor and operational costs in the US compared to Taiwan have sparked concerns about potential pressure on TSMC’s profit margins once production begins. The plant will manufacture 4-nanometer chips.
The semiconductor giant has also pushed back the timeline for its second Arizona facility. Originally set to start 3-nanometer chip production in 2026, that target has now moved to 2028. Plans for a third facility, possibly utilizing 2-nanometer or A16 technology, remain under consideration with production potentially starting in 2030.
Despite these setbacks, analysts expect TSMC to maintain double-digit growth next year as production efficiency improves. The company’s 2022 groundbreaking ceremony drew high-profile attendees including President Biden and tech industry leaders such as Apple’s Tim Cook and Nvidia’s Jensen Huang.
