By Wen-Yee Lee
TAIPEI (Reuters) – TSMC’s new U.S. plant is unlikely to get essentially the most superior chip expertise earlier than factories in Taiwan because of complicated compliance points, native building rules and numerous allowing necessities, the Taiwanese firm’s CEO mentioned.
Taiwan Semiconductor Manufacturing Co CEO and Chairman C.C. Wei mentioned constructing the brand new manufacturing unit in Arizona has taken not less than twice so long as in Taiwan, in feedback detailing particular challenges for the U.S. because it seeks to rebuild its home chip manufacturing sector.
“Every step requires a permit, and after the permit is approved, it takes at least twice as long as in Taiwan,” Wei mentioned late on Thursday at a Nationwide Taiwan College occasion. He added that it might subsequently be arduous for TSMC to make use of its newest expertise within the U.S. earlier than Taiwan.
TSMC, the dominant maker of superior chips utilized by firms together with Apple (NASDAQ:) and Nvidia (NASDAQ:), is spending $65 billion on three big factories in the united statesstate of Arizona.
TSMC has mentioned most of its chip manufacturing would stay in Taiwan, particularly for essentially the most superior chips.
Wei mentioned at an earnings convention on Thursday that, regardless of numerous challenges and value overruns, he was assured the Arizona manufacturing unit would produce the identical high quality of chips as in Taiwan, and he anticipated a clean ramp-up course of.
On the college occasion, Wei mentioned a scarcity of expert staff and gaps within the provide chain, in addition to a scarcity of rules involving chip plant building, have additional prolonged the timeline for its Arizona mission.
“We ended up establishing 18,000 rules, which cost us $35 million,” Wei mentioned, noting that TSMC funded the hiring of a group of specialists to work with the native authorities on regulatory points.
He added that chemical provide prices within the U.S. are 5 occasions these in Taiwan, main TSMC to ship sulphuric acid from Taiwan to Los Angeles after which truck it to Arizona.
Labour shortages have additionally posed challenges, with TSMC bringing half of the development staff from Texas to Arizona, growing prices because of relocation and lodging, he mentioned.
The U.S. authorities has provided full-throated help for the funding, together with a $6.6 billion grant, because it seeks to unfold geographic danger from an over-concentration of chip manufacturing in Asia, significantly Taiwan.
U.S. Commerce Secretary Gina Raimondo mentioned final week that TSMC had begun producing superior 4-nanometer chips for U.S. clients in Arizona, a milestone within the Biden administration’s semiconductor efforts.