Currently, 50% of the positions created by TSMC’s initial Arizona chip plant are occupied by Taiwanese workers, despite the company receiving grants totaling up to $11.6 billion aimed significantly at fostering job creation within the US.
The initial reports regarding Apple chips being produced in the US by American labor have gradually become less noteworthy…
Overview of TSMC’s Arizona Chip Facilities
TSMC’s declaration of constructing a chip fabrication facility in Arizona was celebrated as a significant achievement for the US CHIPS Act, which aims to reduce American reliance on China for advanced chip production and to create jobs for US residents. Apple announced with pride its commitment to sourcing American-made chips for certain products.
However, the initial enthusiasm began to fade. The inaugural plant will only produce chips with larger processes, suitable for older Apple devices, and shortly after the announcement, TSMC sought larger subsidies along with reduced regulations.
The project has encountered delays and budget overruns, causing production timelines to move from 2024 to 2025. There are concerns that the cost of US-manufactured chips may exceed those produced in Taiwan, which might lead Apple to reduce its anticipated purchases.
Initially, some speculated that the first plant could become ineffective, as the output would need to return to Taiwan for the ‘packaging’ phase, a method of integrating various circuit boards into a single chip. Following this, Apple disclosed intentions to establish another facility within the US for the packaging process.
Recently, an additional delay in 2nm chip production was reported, triggered by a lawsuit alleging the company engaged in “anti-American discrimination.”
Half of the Workforce is Taiwanese
When TSMC initially announced the employment of Taiwanese workers, they described it as a temporary solution for the construction phase. However, this explanation was challenged as the situation remained constant throughout the previous year.
Doubts about US job creation emerged when TSMC opted to bring in approximately 500 Taiwanese employees to accelerate construction efforts. The conflict surrounding this decision escalated.
While TSMC framed this as a short-term strategy for the construction phase, recent reports indicate a different reality. The Financial Times reveals that nearly half of the production workforce has been sourced from Taiwan, comprising around 50% of the total.
A report by the New York Times confirms this remains the situation at the end of 2024, with claims continuing just a few months before production is set to commence.
Roughly half of the estimated 2,200 employees have been recruited from Taiwan. Additional Taiwanese personnel have arrived in Arizona on temporary contracts for the factory construction. The company anticipates that the percentage of American workers will rise as the plants expand […]
TSMC stated its first factory in Phoenix is projected to initiate commercial production in the first half of 2025.
Photo: Bravo Prince on Unsplash.
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