Apple: Apple supplier TSMC is delaying chip production at Arizona factory, here’s why – Times of India

Apple: Apple supplier TSMC is delaying chip production at Arizona factory, here's why - Times of India


Apple supplier Taiwan Semiconductor Manufacturing Company (TSMC) is delaying the production at its new Arizona chip plant to 2025, company chairman Mark Liu said on the company’s second-quarter earnings call Thursday. The plant was called “a game-changer” by US President Joe Biden because it would bring all the advanced chips “home”.
Liu said that the company does not have enough skilled workers to install advanced equipment at the facility on its initial timeline. TSMC had previously anticipated that it would begin making 5-nanometer chips in 2024.
To solve the problem of skilled workforce, Liu said the company is working to send trained technicians from Taiwan to train local workers to help accelerate installation.
In December, Apple CEO Tim Cook said that Apple will buy US-made chips.
“Today we’re combining TSMC’s expertise with the unrivalled ingenuity of American workers. We are investing in a stronger, brighter future, we are planting a seed in the Arizona desert. And at Apple, we are proud to help nurture its growth,” he said at an event at the company’s Arizona plant.
“And now, thanks to the hard work of so many people, these chips can be proudly stamped Made in America. This is an incredibly significant moment,” Cook said.
Why TSMC Arizona plant is important for the US
TSMC planned to spend $12 billion to build a computer chip factory as the US has been encouraging foreign tech firms to manufacture in the country. Apple has already said it plans to use computer chips built at that plant.
The COVID-19 pandemic highlighted the US dependence on countries like Taiwan to develop computer chips. The plant would give the US more control over the supply chain.
Apple is also expanding its manufacturing footprint in India. Recently, one of its suppliers, Foxconn, made a proposal to set up a plant at Tumakuru in Karnataka.


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