Jul 21, 2023 11:59:00

TSMC's Arizona factory aiming to manufacture iPhones and AI chips postpones the start of production due to ``labor shortage''

TSMC , one of the world's largest semiconductor foundries with famous companies such as Apple, Intel, Qualcomm, NVIDIA, and AMD, will start production of a 4nm chip manufacturing plant scheduled to be built in Phoenix, Arizona due to labor shortages. Announced that it will postpone to 2025.

TSMC delays Arizona factory set to build chips for iPhones and AI - The Verge
https://www.theverge.com/2023/7/20/23802107/tsmc-arizona-chip-factory-delay-q2-earnings-report

Apple Supplier TSMC Delays Production of 4nm Chips at Arizona Factory Due to Skilled Worker Shortage - MacRumors
https://www.macrumors.com/2023/07/20/tsmc-4nm-chip-production-delay/

TSMC Announces Q2 Revenue Fall, Expects Q3 Rebound Fueled by 3nm Tech
https://www.hpcwire.com/off-the-wire/tsmc-announces-q2-revenue-fall-expects-q3-rebound-fueled-by-3nm-tech/

Profits are down for TSMC but the iPhone 15 will help it rebound
https://appleinsider.com/articles/23/07/18/tsmc-profits-fall-but-the-iphone-15-will-help-it-rebound

The manufacturing plant that TSMC is building in Phoenix, Arizona, USA, began construction in 2021 and was originally scheduled to start producing 4nm chips in 2024. A second factory is scheduled to open in 2026 on the same factory premises, which will be responsible for the production of 3nm chips.

About the second factory TSMC plans to build in Arizona, Apple CEO Tim Cook has stated that it will 'manufacture Apple silicon.'

TSMC announced a plan to build a 3 nm semiconductor factory in Arizona, and Apple's CEO Tim Cook stated that `` Apple silicon will be manufactured in Arizona ''-GIGAZINE

Such TSMC has announced its financial results for the second quarter of 2023 (April to June). Among them, Chairman Mark Liu said, ``We are facing challenges due to the lack of skilled workers with the necessary expertise to install equipment at semiconductor-grade facilities,'' he said.

Liu also revealed plans to temporarily send technicians from Taiwan to train local workers at the Phoenix manufacturing plant. It is reported that Nikkei Asia plans to dispatch a task force of more than 500 experienced workers in June 2023.

According to TSMC's

second quarter 2023 financial results report , the company's sales in the same period decreased by 10% year-on-year to about 15.4 billion dollars (about 2.16 trillion yen), and net income decreased by 23% year-on-year to 5.8 billion dollars (about 810 billion yen).

Shipments of 5nm chips will account for 30% of total wafer revenue in Q2 2023, with 7nm chips accounting for 23%. In other words, ``7nm or higher chips'', which are considered to be the most advanced technology at the time of writing the article, accounted for 53% of the total wafer revenue.

TSMC CEO Shishi Wei has predicted that full-year sales in 2023 will decline by about 10% year-on-year due to a decline in demand for consumer electronics. ``Rising inflation and interest rates will impact final demand in all regions and market segments of the world,'' Wei said.

The advent of advanced generative AI like ChatGPT has increased the demand for advanced chips to run these. TSMC has struggled to supply advanced chips and has admitted to lacking production capacity, but Wei is optimistic that the situation will improve towards the end of 2024.

On the other hand, a market analyst said, ``Taiwan companies have not benefited from electric vehicles because most of the electric vehicle suppliers are in China.But when it comes to AI, the story is different.The entire AI supply chain is in Taiwan, so TSMC will benefit the most from AI.''

TSMC's 2023 net revenue will come from companies based in the North America region, with 66% outperforming competing markets such as China (12%) and EMEA (7%).