With the rapid growth of the technology world, the need for the chip and chip industry has also increased. In this context, TSMC, one of the world’s largest chip manufacturers, is preparing to open factories in the US. However, the company announced that there will be unexpected disruptions in some regions.

TSMC postpones opening of US Phase 2 factory

Taiwan Semiconductor Manufacturing Company (TSMC) has indicated that its second semiconductor manufacturing plant in Arizona will be delayed. Although the exact date was not given, it is thought that the factory setup could take one to two years.

In TSMC’s earnings report for the last quarter, CEO Mark Liu discussed the construction of the Phase 2 factory in Arizona. Emphasizing that the construction of the facility continues at full speed, the CEO stated that the technology to be used is still under discussion.

The facility is first expected to open in 2026 and host a 3nm production line. However, CEO Liu stated that the first productions will start in 2027 or 2028 according to current plans. The biggest reason for the delay is that the US government has cut incentives for the project.

CEO Liu stated that customer demand in the region and TSMC’s optimization for its overseas factories will determine the production process. In this context, it remains unclear for now whether the factory will produce 3nm chips.

Industry analysts believe TSMC has a tough decision to make. Given that the 1 factory will start 4nm production in 2025, it seems likely that Phase 2 will be upgraded to a more advanced architecture such as 2nm.

Liu added that Phase 1 will offer the same level of production quality as its factories in Taiwan once it is operational.