TSMC says its $40 billion chip project in Arizona faces a further delay

[Johnhw222]

Phase one of TI semiconductor plant in Sherman texas goes online in 2025 and construction of the first phase of 4 phases estimated to cost $ 30B is shutting up. This area is becoming known as Silicon Valley of north Texas as another chip maker has started construction on the $5B plant there too.

[MN-Born-n-Raised]

TSMC's facility is just the beginning... The TSMC counts on an extensive highly specialized smaller companies that are going to expand here. So expect many synergistic companies to come to the Valley. For instance, this Tempe, AZ company that tests and packages semi's bought 55 acres near the plant. It will eventually spend $2B and hire 2,000 people https://ir.amkor.com/news-releases/n...-test-facility

From https://businessjournalism.org/2023/...conductor-hub/ "So far, about 20 semiconductor companies have officially announced they will begin operations in Arizona and about 20 more are in the pipeline, according to the Greater Phoenix Economic Council (GPEC), which drives economic development in the region.

But the organization is hoping for more. Many more." Think around a few hundred.

Add to the fact that NXP Semiconductors N.V., Microchip, and Onsemi are also here. A surge in technical brainpower is coming. If was an engineer thinking about moving and working in the far northwest Valley, I'd want other job opportunities in case that move didn't work out. It seems many more jobs are coming.

While I am philosophizing. The semiconductor space doesn't pay nearly as well as other technical disciplines. For instance, software engineers often make a lot more $$. Heck, even non-degreed talented programmers can make >$150K. More than an EE with a PhD in the semiconductor arena.

Margin matters. With semiconductors, margins are skinny and therefore, there is a lot of pressure on wages. It's one reason why the country that invented integrated circuits (Texas Instruments) struggles to manufacture them here in the States: other countries have a lot lower wages. IMO, that USA wage pressure will be the biggest obstacle for the CHIPs Act to flourish. I think we will have a labor shortage in the years to come holding back this expansion.

[RetireinPA]

Originally Posted by marinezac

... the Taiwanese chipmaking titan needed to review “how much incentives … the US government can provide.”

.

This, is all you need to read.

[john3232]

Originally Posted by marinezac

https://www.cnn.com/2024/01/19/tech/...hnk/index.html


Hong Kong
CNN
—
TSMC says its second factory in Arizona will be delayed, marking another setback for the world’s largest chipmaker and its role in US President Joe Biden’s bid to boost American manufacturing.

The facility will now be operational in 2027 or 2028, compared to previous expectations of a 2026 start, according to Chairman Mark Liu.

“There will be a gap,” he told analysts on an earnings call Thursday.

Liu said construction on the shell of the factory had begun, but the Taiwanese chipmaking titan needed to review “how much incentives … the US government can provide.”

The company is in close contact with US officials on the matter, including discussion of tax credits, he added.

It’s the second time TSMC (TSM), the world’s largest chipmaker, has been forced to push back its plans in the western US state.

Looks like they're going to get it...

U.S. to reportedly announce billions of dollars in subsidies for advanced chips
https://www.cnbc.com/2024/01/27/us-t...ced-chips.html

[wac_432]

Saw the TSMC construction site on my way back from the eclipse. It's big!

Read this interesting article today:
https://restofworld.org/2024/tsmc-arizona-expansion/

There's a similar article on a mostly-abandoned LCD plant in Wisconsin, but I think TSMC will actually produce chips in Arizona, just probably lower-tech chips, running at a loss, and eventually downsizing and using big chunks of the factory space for storage and other types of manufacturing.

Interesting that they got a fab up and running in Japan in 2 years, while nothing is even scheduled to come out of the Arizona fab until 2025--and even that sounds like a pipe dream at this point.

I can identify with the Taiwanese quote "Great mountains, Great rivers, Great boredom." Even with beach and skiing within driving distance, Taipei is a lot more fun than where I live.

[YAZ]

Well, I lived and worked in Japan for a while (Tokyo)....

Mountains, water, and twice as many people as NYC.

The Phoenix area might as well be the Moon to Taiwanese folks.

[MN-Born-n-Raised]

Originally Posted by wac_432

Saw the TSMC construction site on my way back from the eclipse. It's big!

Read this interesting article today:
https://restofworld.org/2024/tsmc-arizona-expansion/

There's a similar article on a mostly-abandoned LCD plant in Wisconsin, but I think TSMC will actually produce chips in Arizona, just probably lower-tech chips, running at a loss, and eventually downsizing and using big chunks of the factory space for storage and other types of manufacturing.

Interesting that they got a fab up and running in Japan in 2 years, while nothing is even scheduled to come out of the Arizona fab until 2025--and even that sounds like a pipe dream at this point.

I can identify with the Taiwanese quote "Great mountains, Great rivers, Great boredom." Even with beach and skiing within driving distance, Taipei is a lot more fun than where I live.

Thanks for sharing the article. It was an interesting read.

Two points:
The engineer they interviewed said: "The job sounded like he’d be “pushing the boundaries of human technology,” he recalled to Rest of World." That engineer was a WAY off! The process is designed in Taiwan. The engineers in semi-manufacturing are keeping the lineup; not designing processes.

Finally, "Younger families planned pregnancies so they could give birth to American citizens. “If we are going to have children, Of course, we will have them here.” Yep. But they forgot a detail. China WILL take over Taiwan. Smart Taiwanese families are going to get out when they can.

I bet 3/4 of the total workforce will eventually be Taiwanese galore. Expect a little "Chinatown" near Peoria within 5 years.

[uaeebs86]

Some friends of ours have a son who works in supply chain at the new TSMC plant. Apparently he has to work at the office, and they have to work on business hours in Taiwan. (I think that means he must have to go into the office around 5:00 PM or 6:00PM Arizona time)