TSMC chip fab site in Arizona, touted last year by Joe Biden, struggles with delays and scepticism

As local unions and Taiwanese semiconductor giant negotiate elusive labour deal, some wonder who will benefit in US push for manufacturing primacy

American leader hailed facility built by world’s largest chip maker following passage of law meant to boost nation’s competitiveness with China

Reading Time:6 minutes

Khushboo Razdanin New YorkandBochen Hanin Washington

Published: 1:00am, 26 Sep 2023Updated: 10:00am, 26 Sep 2023

It was last December when US President Joe Biden stood at a groundbreaking ceremony for a chip fabrication facility being built in Phoenix, Arizona, by the world’s largest chip maker, Taiwan Semiconductor Manufacturing Co, and described American union workers as “the single greatest technicians in the world”.

“American manufacturing is back”, Biden declared. “The reason why business should be hiring union folks, if you don’t mind my saying, is simple: They’re the best in the world.”

His remarks elicited warm applause from the friendly audience and came in the presence of TSMC’s chairman, Mark Liu, who took the opportunity to announce a second chip factory would be built in the southwestern US state.

The moment appeared to advance Washington’s goal of reducing American reliance on foreign semiconductor facilities, many of which are located in Taiwan.

But nine months on, the Arizona project – once hailed as the crown jewel of Biden’s Chips and Science Act meant to make the US self-reliant in chips manufacturing – has been marred by delays, criticism and mounting scepticism.

TSMC has pushed back production plans, blaming a lack of skilled labour in the US and calling Washington to fast-track visas for Taiwanese workers. Unions counter that the tech giant has invented the skills shortage as an excuse to hire cheaper, foreign labour.