TSMC delays opening of U.S. factory until 2025

At present, Taiwan Semiconductor Manufacturing Company (TSMC) is constructing a new semiconductor foundry, Fab21, in Arizona, United States. The initial phase of the production line was slated to commence operations in 2024, utilizing the N4 and N5 process technologies. However, in a recent financial earnings conference call with financial analysts and investors, TSMC’s Chairman, Dr. Mark Lui, declared that due to a dearth of professional personnel required for the installation of semiconductor facilities, the initiation of Fab21’s mass production will be postponed until 2025, approximately a year’s delay.

The phase one project of Fab21 kicked off in April 2021, with the main structure reaching completion in mid-2022, marginally later than the original schedule. Equipment installation began in December 2022, and following standard procedures, the installation of cleanroom tools within a semiconductor foundry generally takes about a year. However, due to local personnel’s unfamiliarity with TSMC’s specific requirements, various delays have occurred during the installation of production tools at Fab21.

To remedy this situation, TSMC intends to assign approximately 500 staff members from Taiwan to the United States to assist with the installation of production tools and mechanical and electrical systems at Fab21, with visa applications presently underway. These seasoned technicians dispatched by TSMC will also conduct short-term training for local technical workers to expedite progress.

As of now, TSMC has not finalized a definite timeline for the commencement of mass chip production at Fab21, as it largely hinges on the progress of the production equipment installation. Consequently, a portion of the orders from Apple, AMD, and NVIDIA may need to be reallocated, potentially leading to TSMC’s semiconductor foundries operating at full capacity in 2024.