According to the CEO of the Taiwanese company, complicated compliance difficulties, local construction rules, and numerous permitting processes make it unlikely that TSMC’s new U.S. plant will receive the most cutting-edge chip technology before manufacturers in Taiwan.
In remarks outlining particular difficulties facing the United States as it attempts to revive its domestic chip manufacturing industry, Taiwan Semiconductor Manufacturing Co. CEO and Chairman C.C. Wei stated that the construction of the new plant in Arizona has taken at least twice as long as in Taiwan.
Wei stated late Thursday at a National Taiwan University event, “Every step requires a permit, and after the permit is obtained, it takes at least twice as long as in Taiwan.” Therefore, it would be difficult for TSMC to use its most recent technology in the United States before Taiwan, he continued.
The leading producer of cutting-edge processors used by businesses like Apple and Nvidia, TSMC, is investing $65 billion in three massive plants in the US state of Arizona.
According to TSMC, the majority of its chip production will continue to take place in Taiwan, particularly for the most cutting-edge processors.
At an earnings call on Thursday, Wei expressed confidence that the Arizona plant would produce chips of the same quality as those in Taiwan, despite a number of obstacles and cost overruns. He also anticipated a seamless ramp-up process.
Wei noted during the university event that the Arizona project’s schedule has been further prolonged by a lack of rules pertaining to chip plant development, a lack of experienced workers, and gaps in the supply chain.
Wei stated that TSMC paid for the employment of a group of specialists to collaborate with the local government on regulatory matters. “We ended up establishing 18,000 guidelines, which cost us $35 million,” Wei claimed.
He went on to say that TSMC ships sulfuric acid from Taiwan to Los Angeles and then trucks it to Arizona because the cost of chemical supplies in the United States is five times higher than in Taiwan.
Due to labor shortages, TSMC has had to relocate half of its construction workers from Texas to Arizona, which has increased relocation and lodging costs, he said.
To diversify geographic risk from an over-concentration of chip manufacturing in Asia, especially Taiwan, the U.S. government has thrown its full backing behind the initiative, including a $6.6 billion grant.
Last week, U.S. Commerce Secretary Gina Raimondo announced that TSMC had started manufacturing cutting-edge 4-nanometer chips for American consumers in Arizona, marking a significant advancement in the Biden administration’s semiconductor initiatives.
