Taiwanese silicon giant TSMC will push back the opening of the second of its two planned chipmaking facilities in Arizona. The move comes nearly six months after delaying the first plant. Credit: GlobalFoundaries TSMC, the largest semiconductor manufacturer in the world, will delay the opening of the second of its two US-based foundries, the company announced today during its quarterly earnings call. The first such foundry, announced in 2020, has already been delayed past its initial opening date of late 2024 — thanks, in part, to labor disputes over safety issues, workers imported from overseas, and workforce development programs. The labor dispute was resolved in December after the company reached an agreement with local unions, but TSMC had already pushed the initial production date for that facility to 2025. The second foundry, whose opening was delayed today, is designed to produce some of the company’s most advanced chips, which use a 3nm process. TSMC has said it expects a wide range of uses for the chips, including high-performance computing and automotive customers. In an earnings call early Thursday, TSMC Chair Mark Liu said the second facility is still under construction, but the process and production to take place there is now uncertain. “What technology [is] in that shell is still under discussion,” he said. “And I think that also has to do…with how much incentive the US government can provide.” TSMC said that the second foundry is now set to open in 2027 or 2028, not, as the company had previously said, in 2026. The chipmaker said the two combined foundries will represent $40 billion in direct investment. According to Mario Morales, a group vice president at IDC, TSMC’s delay is all about the CHIPS and Science Act, which was passed in 2022 and held out the promise of substantial grants to chipmakers in exchange for locating semiconductor manufacturing capacity in the US. With the exception of one R&D project, which was related to an active US government program, no grants have been disbursed. “[TSMC is] waiting to make sure the application is awarded to them for the facilities in Arizona,” Morales said. The eventual opening of the Arizona foundries will advance the state of domestic silicon manufacturing substantially, he said, given that TSMC, along with other firms in Taiwan and in South Korea, have made the most technological advancements in the sector. “TSMC caters to hundreds of different customers, and the largest ones are US companies, like Apple, Qualcomm, Broadcom, AMD, and Intel,” Morales said. “It just takes time – that whole office for the government is still being constructed, and they have to hire a lot of people and do their due diligence [on grant applications.]” Related content feature Office 365: A guide to the updates Get the latest info on new features, bug fixes, and security updates for Office 365/Microsoft 365 for Windows as they roll out from Microsoft. Now updated for Version 2404 (Build 17531.20152), released on May 14, 2024. By Preston Gralla May 14, 2024 110 mins Microsoft 365 Microsoft Office Office Suites feature Windows 11: A guide to the updates Here’s what you need to know about the latest updates to Windows 11 as they’re released from Microsoft. Now updated for KB5037771, released on May 14, 2024. By Preston Gralla May 14, 2024 60 mins Small and Medium Business Microsoft Windows 11 feature Windows 10: A guide to the updates Here's what you need to know about each update to the current version of Windows 10 as it's released from Microsoft. Now updated for KB5037768, released on May 14, 2024. By Preston Gralla May 14, 2024 172 mins Small and Medium Business Windows 10 Microsoft news analysis Apple reports on its forever war against App Store fraud Apple prevented over $1.8 billion worth of potential fraud in 2023 alone — that’s up 20% in four years. By Jonny Evans May 14, 2024 6 mins Apple Mobile Apps Application Security Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe