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 news analysis Apple confirms it will open up the iPad in Europe this fall The latest efforts to comply with Europe’s Digital Markets Act mean developers can offer to side load apps to both iPhones and iPads in the EU. Apple has also taken steps to improve what it offers to smaller and non-commercial developers in the By Jonny Evans May 02, 2024 6 mins iPad Apple Mobile Apps news Udacity offers laid-off US workers free access to its courses for 30 days Sign-ups will be available over the next 30 days By Lucas Mearian May 02, 2024 4 mins Technology Industry IT Jobs IT Skills opinion Why you’ll soon have a digital clone of your own AI isn’t going to replace you at work. You will. By Mike Elgan May 02, 2024 7 mins Augmented Reality Generative AI Virtual Reality news analysis Workers with these AI skills are getting cash premiums As AI deployments become more critical to digital transformation projects, organizations are struggling to find skilled workers to support the new technology, so they're paying premiums for prospective hires or current employees who obtain the n By Lucas Mearian May 01, 2024 7 mins Generative AI IT Jobs IT Skills 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