Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) CEO C.C. Wei blamed slow U.S. permitting, strict construction rules, and labor shortages for delays at its Arizona plant, saying Taiwan will get the company's most advanced chip technology first.
"Every step required a permit, and after approval, it took twice as long as in Taiwan," Wei said Thursday at a National Taiwan University event. The Biden administration finalized a CHIPS Act deal last year, securing up to $6.6 billion in grants and $5 billion in loans to support TSMC's Arizona expansion.
The project promised $65 billion in private investment and expected to create thousands of jobs. Wei reassured investors on TSMC's earnings call, saying the Arizona facility matched Taiwan's quality. However, supply chain gaps and a shortage of skilled workers slowed progress. TSMC produces chips for Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), and AMD (NASDAQ:AMD).
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