In a blow to Biden, TSMC: Chip giant delays Arizona production

On July 19, US President Joe Biden makes a speech at the White House

President Biden's technology goals have been hampered by Taiwan Semiconductor's (TSMC) decision to postpone the start of production at its facility in the US state of Arizona.

According to the company, there will no longer be any chip manufacturing in 2019 due to a lack of skilled labor.

Plans to increase chip production in the US have been outlined by the White House.

It occurs as a long-running trade dispute between Washington and Beijing that is centered on the technology gets worse.

The price of TSMC's shares decreased by more than 3% on Friday in Taiwan.

Mark Liu, chairman of TSMC, announced on Thursday that the company's Arizona factory in the southwest of the US would now start producing advanced microprocessors in 2025.

Mr. Liu stated during an earnings presentation that there was a lack of workers with the "specialized expertise required for equipment installation in a semiconductor-grade facility" at the plant, which has been under construction since April 2021. ".

He continued by saying that the company was "working to improve the situation, including sending experienced technicians from Taiwan to temporarily train the local skilled workers [in the US].".

The slower demand for semiconductors led TSMC to predict a 10% decline in sales this year.

In comparison to the same period last year, the company reported that its profits dropped by about 23% to 181.8 billion Taiwanese dollars ($5 point8 billion; £4 point5 billion) in the three months ending in June.

In 2020, during Donald Trump's presidency, TSMC made its initial announcement regarding the construction of a facility in Arizona.

The company announced in December of last year that it would more than triple the project's investment to $40 billion (£31 point 1 billion). One of the biggest foreign investments in American history occurred with this.

At the time, Mr. Liu stated that the Arizona plant's two TSMC semiconductor production facilities would each be operational by 2024 and 2026, respectively.

As part of a protracted technology dispute, the US has taken a number of actions against China's chip manufacturing sector while simultaneously investing billions of dollars to expand its own semiconductor sector.

Computer chips, which are essential to everything from cars to mobile phones, are produced by the US for about 10% of the world market. The nation produced almost 40% of the world's output in 1990.

President Biden signed legislation last year allocating $280 billion to US high tech manufacturing and scientific research.

Tax incentives were included in the investment for businesses that established factories here to make computer chips.

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