TSMC delays Arizona factory that will eventually build chips for iPhones and AI

A logo of Taiwan Semiconductor Manufacturing Company (TSMC)
TSMC is also predicting a 10 percent decline in revenue for 2023 amid falling demand for consumer electronics. | Photo by VCG via Getty Images

The world’s biggest chipmaker is pushing back the start of 4nm chip production at its new facility in Phoenix, Arizona, to 2025, blaming labor shortages. Apple has said that it intends to eventually source chips for its iPhones and MacBook models from the Taiwan Semiconductor Manufacturing Company (TSMC) plant in the US, while Nvidia and AMD have also committed to using its production capacity.

The chipmaker’s first Phoenix-based fab, which began construction in 2021, was originally projected to start producing 4nm chips next year. A second fab that will produce smaller, more complex 3nm chips is scheduled to open in 2026.

During the company’s Q2 earnings call on Thursday, TSMC chairman Mark Liu said that the company was “encountering...

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