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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Dutch Semiconductor Company ASM to Invest over $300 Million into Arizona

The semiconductor industry continues to make waves in Arizona.

ASM International, a Dutch semiconductor equipment company with offices in Phoenix, announced that they are investing over $320 million into a new campus in Scottsdale. They have had a presence in Phoenix since the 1970s, but they said this expansion will help with their overall growth. The transition to the Scottsdale facility is expected to be completed in 2026. The company didn’t have any estimates on new jobs in the facility.

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Another Semiconductor Company Invests $2 Billion into North Phoenix Area

Amkor Technology

Amkor Technology is pouring roughly $2 billion into a packaging and test facility in Peoria, Arizona, which marks another major development for the semiconductor industry in the state.

Once construction is finished on the planned 500,000 square feet – larger than eight football fields – facility, it’s expected to create 2,000 jobs.

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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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U.S. Chipmaker Ordered to Halt Sales of Semiconductors to China

American chipmaker Nvidia announced in a Wednesday quarterly report that the U.S. government informed them of a new license requirement that would prohibit the sale of two advanced chips to China and Russia.

The U.S. government was concerned that the chips, which have applications in artificial intelligence work, might be co-opted by the Chinese or Russian militaries, according to Nvidia’s quarter two report. The chips were expected to generate $400 million in quarterly sales, revenue which is now in jeopardy from the new restriction, according to Reuters.

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Commentary: Bipartisan CHIPS Act Tackles U.S. Dependence on China

China’s rise to rival the United States as a global superpower has been unprecedented. The last war between empires was centered around an arms race, and ended with the U.S. standing strong and solitary atop the world as the Soviet Union fell. But a new race has begun in those 30 years since. China sprinted ahead of the U.S., this time in the field of technology, and aims to stay there. But Congress and the Biden administration have other ideas.

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