TSMC Sees a Delay in 3nm Fab In Arizona, Now Expected to Commence Production By 2027

Taiwanese semiconductor giant TSMC has reportedly faced a roadblock in the Arizona facility 3nm development, potentially delaying it to 2027.

The shift of cutting-edge facilities to the US hasn't been going well for TSMC, since the firm has faced barriers in the form of facing social concerns of the workforce all the way to lack of cooperation from the governments.  However, the problems have increased to an extent, where now it is being reported that the Arizona facility, specifically the Fab 21, will see yet again another delay in the form of employing processes, and TSMC themselves aren't confident moving into the future.

In a conference call, TSMC's Chairman Mark Liu disclosed the status of Fab 21 phase 2 development to analysts, claiming that the development of the facility depends on the extent of cooperation by the US Government in the form of subsidies and providing the necessary resources. Here is what the chairman had to say:

Yes. The second fab shale is under construction. But what technology in that shell is still in under discussion. I think that also has to do with how much incentives that fab, the U. S. Government can provide. And yes, there will be a gap. At least, current planning is '27 or '28, that will be time frame.

To be honest, most of the fab in overseas, what actually be loaded, what technology is being set up, really, it's a decision of customers' demand in that area at that timing. So, nothing is definitive, but we are trying to optimize value for the overseas fab for TSMC.

Mark Liu - TSMC Chairman via Seeking Alpha

So the above statement now makes it clear that TSMC is hoping for the fab's 3nm production to take place by 2027 or 2028, which makes it a delay of more than a year. It is important to note that the Arizona facility has generally been subject to delays multiple times, and previously, mass production was delayed to 2025, with TSMC citing a lack of the availability of a "skilled workforce". By the new timeframe specified by TSMC, it is evident that firms such as Apple, who were relying on the Taiwanese giant for their products, will have to adjust accordingly, to directly source cutting-edge processes from the US.

Another interesting statement by Mark Liu is the "optimization" of facilities, which means developing them in a way to cater to demand within the region. However, if the mass production of the firm's 3nm process takes place by 2027, it would be questionable whether the node will be relevant at that time but TSMC might have sorted this out, and since the US facility is such a big thing for tech firms generally, it surely won't be left behind.

News Source: Seeking Alpha