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Benzinga
Benzinga
Technology
Anusuya Lahiri

Read Why TSMC's US Chip Plant Construction Falls Behind Schedule

  • Taiwan Semiconductor Manufacturing Co Ltd's (NYSE:TSM) advanced chip plant debut in the U.S. is three to six months behind schedule, Nikkei Asia reports.
  • TSMC planned to move in chip production equipment by around September 2022 but decided to postpone to around February or March 2023.
  • The deferral was mainly due to labor shortage, the on-and-off surge of COVID-19 infections in the U.S., complicated processes for obtaining the different types of licenses needed for construction.
  • TSMC can often reach the equipment move-in phase for new plants in Taiwan in around 15 months and, in some cases, as little as 12 months.
  • After installing the equipment, it can take up to a year for production lines to be qualified and production ramped up.
  • TSM admitted that production at the U.S. plant will not start until the first quarter of 2024. 
  • Unfamiliarity with a new geography, competition from Intel Corp (NASDAQ:INTC) for workers, supply chain concerns continue to pinch TSMC along with limitations of management capability and higher unit cost of making chips in the U.S.
  • Price Action: TSM shares traded higher by 3.73% at $124.24 on the last check Tuesday.
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