The importance of money in building cutting-edge chip factories cannot be underestimated. However, there is another crucial factor that plays a vital role in this process – the availability of qualified employees. Taiwan Semiconductor Manufacturing (TSMC) is currently facing this very challenge in the United States.
TSMC recently announced a delay in the production schedule for its semiconductor fab in Arizona. Originally set to begin manufacturing 4-nanometer chips in 2024, the company now anticipates a delay until 2025. The reason for this setback? The difficulty in hiring highly skilled workers.
During the company’s second-quarter earnings call with analysts, TSMC chairman Mark Liu highlighted the issue at hand. He stated that finding a sufficient number of workers with specialized expertise has proven to be a challenge. As a result, TSMC plans to tackle this problem by sending experienced technicians from Taiwan to assist in training workers in the U.S.
Last year, TSMC had announced a significant investment of approximately $40 billion for its two fabs currently under construction in Arizona. As the world’s largest third-party semiconductor chip manufacturer, TSMC commands a dominant position in the market for high-end chips. Notably, TSMC is responsible for manufacturing the main processors found in Apple iPhones, Qualcomm mobile chipsets, and processors developed by Advanced Micro Devices (AMD). According to TrendForce, TSMC holds an impressive 60% market share in the third-party chip manufacturing industry, followed by Samsung at 12%.
Despite the financial resources allocated and TSMC’s unrivaled position in the market, the shortage of qualified workers continues to pose significant challenges. However, the company remains committed to overcoming these hurdles and delivering cutting-edge chip technology to meet the growing demand for innovative electronic devices.
Semiconductor Manufacturer Facing Challenges Amidst Economic Downturn
In a recent announcement, a leading semiconductor manufacturer revealed that it is lowering its financial guidance for the year, predicting a 10% decline in revenue compared to the previous year. This revision is primarily attributed to the unexpected decline in demand outside of the thriving AI chip market.
Recognizing the importance of having dependable access to semiconductor factories for military systems and overall economic stability, U.S. policy makers have been expressing concerns about Taiwan’s near monopoly in advanced chip manufacturing. They fear that escalating geopolitical tensions with China could potentially transform this monopoly into a national security risk.
To address this concern, President Joe Biden signed the Chips and Science Act last year. This legislation includes significant funding amounting to approximately $52 billion, aimed at bolstering domestic chip manufacturing. However, the recent delay in TSMC’s operations highlights another critical issue – a shortage of skilled talent.
It is imperative for the United States to modify its current policies; otherwise, more delays in domestic chip manufacturing can be expected.
