TSMC reportedly can’t get enough skilled workers to build its processor factory in Arizona. The company’s CEO warns that this means the start of chip manufacture in the United States won’t begin as soon as had been earlier projected.
That’s not good news for Apple, which has committed to sourcing processors from the plant.
TSMC forced to delay production at US plant
Apple designs the A-series and M-series processors that go into iPhone, iPad and Mac, but the chips are produced by Taiwan Semiconductor Manufacturing Company. Currently, that happens in Taiwan. But tax credits in President Joe Biden’s CHIPS and Science Act helped persuade the company to expand production to the United States.
The process apparently isn’t going as well as hoped, however.
“TSMC Chairman Mark Liu said construction in Arizona is hampered by a shortage of skilled workers and that the company might have to bring in experienced technicians temporarily from Taiwan,” reported the Wall Street Journal.
Previously, the company said production of 4nm processors would begin in 2024. Liu now says that it won‘t start until 2025.
Bad news for TSMC is bad news for Apple
Apple is TSMC’s largest customer, and it’s backing the U.S. plant: Apple CEO Tim Cook committed to buying processors made in Arizona. That’s not surprising, as many components for iPhone and other devices are produced in the U.S.
So a delay in making chips in Arizona isn’t a positive for Apple, though of course it can continue to buy processors produced by TSMC in Taiwan.
Also, the A17 and M3 for the upcoming iPhones and Macs are reportedly being made with a 3nm process, not the 4nm one. TSMC isn’t scheduled to begin making 3nm chips in the U.S. until 2026. Whether the technician shortage will affect that plan is as yet unknown.
