The Biden government’s plans to boost the semiconductor industry within the U.S. are experiencing significant delays.
In 2022, Taiwan Semiconductor Manufacturing Company (TSMC) announced plans to spend $40 million building two chip factories in Phoenix, Arizona. Production at one building was supposed to begin this year; however, “last summer, TSMC pushed back initial manufacturing at its first Arizona factory to 2025,” reports The New York Times. Last month, they company said the second factory wouldn’t be operational until 2027 or 2028, instead of the initially planned 2026.
TSMC chairman Mark Liu told investors that progress on the Phoenix chip hub is dependent on “how much incentives that the U.S. government can provide.”
“TSMC is just one of several chip makers running into obstacles with their U.S. expansion plans,” The New York Times reports. “Intel, Microchip Technology and others have also adjusted their production schedules, as a sales slump in many kinds of chips pressures the companies to manage their spending on new infrastructure.”
A crucial part of Biden’s plan to boost semiconductor manufacturing in the U.S. is dispensing $39 billion in funds under the CHIPS Act to various manufacturers to incentivize U.S. production, and the Biden campaign is set to campaign heavily on the policy, according to The New York Times. However, the delays of the TSMC project and others are “raising questions about the prospects of success for President Biden’s industrial policy program.”
