Taiwan Semiconductor Manufacturing Co. Announces Second Delay in Arizona, Cites Questions over Biden Administration ‘Incentives’

The Taiwan Semiconductor Manufacturing Co. (TSMC) announced another delay in Arizona on Thursday, this time revealing its second factory in the state will take another year to be completed, and may not create less advanced semiconductors than its first. The company’s chairman, Mark Liu, said in an earnings call that the schedule will depend on “incentives” secured from the Biden administration.

Asked about the initial Arizona delay and what effect it would have on TSMC’s second facility in the state, Liu confirmed “a gap,” with the company currently planning for it to begin production 2027 or 2028.

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TSMC Reportedly Delays Equipment Deliveries to Arizona Semiconductor Factory

The Taiwan Semiconductor Manufacturing Company (TSMC) is reportedly asking vendors to delay deliveries of major equipment to its facility in Arizona. This comes after TSMC delayed the opening of its Arizona chip facility until 2025, and amid reports the company will not manufacture complete semiconductors in the United States.

TSMC is asking manufacturers of high-end semiconductor equipment to hold off on deliveries to its Arizona facility, according to a report released Friday by Reuters. The Taiwanese semiconductor giant is reportedly concerned about decreasing costs, and is “increasingly concerned” about cooling consumer demand, though the company referred to the report as a “market rumor” in a statement to Reuters.

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Arizona TSMC Factory Will Ship Incomplete Semiconductors to Taiwan for Final ‘Packaging’: Report

A new report claims the Taiwan Semiconductor Manufacturing Company (TSMC) will only complete part of the chip manufacturing process at its controversial Arizona facility. The company reportedly intends to ship incomplete products made in Arizona to Taiwan, where they will be finished and sold to major electronics manufacturers in the West.

The report, published Monday by New Information, claims sources close to the company and its new facility in Phoenix have already been informed that the plant will be used to create partially complete products. As a result, the outlet explained, TSMC’s Arizona factory will do little to create an independent supply of semiconductors based in the United States.

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Biden Releases New Arizona Ad Touting ‘Manufacturing Boom’ Despite Taiwan Semiconductor Manufacturing Co. Delay

President Joe Biden launched a new ad in Arizona on Labor Day touting a “manufacturing boom” as part of a $25 million advertising campaign in battleground states, even after the Taiwan Semiconductor Manufacturing Company (TSMC) recently delayed its new Phoenix microchip plant claiming the state lacks skilled talent.

The 30-second ad features Phoenix resident Bill Ruiz, according to The Hill, who brags that “we’re building some of the biggest tech factories in the world right here” in Arizona, and specifically lists new semiconductor factories as an example, ultimately crediting “the laws that Joe Biden got passed” for making their construction possible.

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ElectraMeccanica Begins Electric Vehicle Production in New Mesa Manufacturing Facility Projected to Bring 500 Jobs

Electric vehicle manufacturer ElectraMeccanica (EM) began production in its new Mesa facility Monday, which is projected to create 500 new jobs in the state and produce upwards of 20,000 cars every year.

“We are thrilled to bring production of our vehicles onshore and introduce an enhanced, U.S.-built 2023 model year SOLO EV to market,” said Susan Docherty, CEO of ElectraMeccanica. “It takes a village to do what we are doing. Bringing our manufacturing facility and vision for our company to life only works if there is a true partnership between local and state government leaders who are committed to economic development, along with solid business partners who share a vision to create products that consumers crave.”

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