money, processing and prospects
What's Happening at TSMC
The Taiwanese company began expanding a couple of years ago, and the main direction of development is the United States. TSMC planned to build two factories in Arizona. More precisely, even three, but one is still in question. The project has already begun to be implemented, but problems began to pour in almost immediately. The main one is money.
Difficulties with financing arose in early 2024. At first, it was planned that the company would provide most of the resources itself, and the rest of the investments would come from the US, but these funds were “stuck”. Due to delays in government subsidies, the construction of both factories had to be postponed. Now the first one will be launched not in 2024, but in 2025.
There is no certainty yet about the second factory, Fab 21. In 2022, at the planning stage, it was reported that it would be launched in 2026, and it was going to produce 3-nm chips. But uncertainty about investments from the US forced the company to change its plans. The new deadline for commissioning the facility is 2027 or even 2028.
“The second factory is under construction. We are still discussing what kind of chips will be produced here. I believe that all this is connected with the provision of investment from the US. The plant is now planned to be operational in 2027 or 2028.”— stated TSMC Chairman Mark Liu at the company's conference with analysts and investors.
Not only money, but also people
Another challenge for TSMC in the States is the constant complaints from employees about violations of US labor laws. In America, workers' rights are closely monitored, but for TSMC, which is used to long hours (and callouts in the middle of the night), this is problem.
Media, including Tom's Hardwarenote that TSMC management tried to instill Taiwanese work standards in its employees. The result was not very good: due to the rush, many builders, engineers and designers quit, so the company had to urgently look for new employees. And all this – even before the launch of at least one of the factories. By August 2024, the situation became especially difficult, and TSMC had to hire compatriots, organize their relocation and accommodation.
A year ago, an offer for a Taiwanese in the US was rare. Now TSMC invites almost exclusively Taiwanese to build factories, they are already about 50% from all employees. The total number of builders, engineers and designers involved in the deployment of factories is 2,200 people.
Why TSMC Decided to Build a Plant in the States
When Trump was president, he wanted to reduce the US dependence on imported equipment and technology. To do this, American and foreign companies had to build factories in the States. Trump attracted foreigners with subsidies, a preferential tax period, inexpensive resources, and so on. TSMC was one of the invited players.
Without Trump, TSMC would hardly have been interested in building a plant so far from Taiwan. The company is in trouble now, but it’s too late to give up. TSMC has allocated $65 billion for this project and received $6.6 billion in grants from the US authorities.
What about the prospects?
The company continues to operate. The long-term plans include training Americans to work in the production. There is currently a shortage of qualified personnel. Many processes at new facilities have to be built from scratch, but in Taiwan these are already past stages.
“We want to make the factory successful and stable— speaks Richard Liu, Director of Public Relations. — We can't continue to rely on Taiwan to send people here.”.
TSMC has already asked local universities and colleges to increase recruitment for some specialties in order to prepare its personnel. The company is organizing internships and promising employment. Business trips to Taiwan are planned, where employees will be able to study local production processes.
So far, TSMC is doing well, even with its troubled US factories. In 2025, the company plans to begin mass production of 2nm chips using gate-alternating-array (GAA) transistors. In 2026, the process technology will be improved and optimized.
