Apple supplier TSMC delays start of Arizona chip factory


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Workers at TSMC Semiconductor Manufacturing Facility in Phoenix, Arizona, on December 6, 2022.

Brendan Smialowski | AFP | Getty Images

Taiwan Semiconductor Manufacturing Co. will delay production at its new Arizona chip plant to 2025 due to a shortage of skilled labor, the company’s chairman said on TSMC’s second-quarter earnings call Thursday.

Apple has said it plans to use computer chips built at TSMC’s Arizona facility.

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TSMC Chairman Mark Liu told analysts on an earnings call Thursday that the company does not have enough skilled workers to install advanced equipment at the facility on its initial timeline. The company previously anticipated it would begin making 5-nanometer chips in 2024.

Liu said the company is working to send technicians from Taiwan to train local workers to help accelerate installation.

The U.S. has embarked on a major push to bring semiconductor manufacturing back stateside, including through funding the multibillion-dollar CHIPS and Science Act to turbocharge development. The Covid pandemic highlighted the significant dependence the U.S. has on countries like Taiwan to develop computer chips, creating a national security risk and giving the U.S. less control over the supply chain.

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WATCH: A first look at TSMC’s giant 5-nanometer chip fab being built in Phoenix

A first look at TSMC's giant 5-nanometer chip fab being built in Phoenix