Labor shortages delay Arizona chip plant - hopefully not a harbinger for Ohio

TSMC, a Taiwan-based semiconductor manufacturing company, pushed back the opening of its Arizona chip factory until 2025 due to U.S. construction labor issues, said Mark Liu, TSMC chairman.

• “We are now entering a critical phase of handling and installing the most advanced and dedicated equipment,” said Liu. “However, we are encountering certain challenges as there is an insufficient amount of skilled workers with those specialized expertise required for equipment installation in a semiconductor-grade facility.”

• Prior to the earnings call, TSMC announced plans to send several hundred additional workers from Taiwan to the Arizona site to strengthen its construction labor force for the project, according to Reuters.

The U.S. construction industry had 366,000 job openings in May, an increase of 5.5% from April, tilting the power balance in favor of workers. Associated Builders and Contractors chief economist Anirban Basu said that that data confirms “labor shortages remain firmly in place.”