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TSMC allocates $20 billion to Arizona expansion — project faces water and labor shortages, complicated by visa rules
NewsBy Anton Shilov published 21 hours ago
Despite challenges, TSMC is optimistic about Fab 21.
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TSMC's board of directors on Tuesday approved a capital injection of $20 billion into the company's wholly owned subsidiary TSMC Arizona, which will be used to continue the expansion of the Fab 21 site. While the allocation proves that the project is moving smoothly, the company is still facing multiple challenges in Arizona, including labor and water shortages, according to a report from Taipei Times.
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The approval of a capital injection is a formal procedure that grants TSMC management the right to use the money for the expansion of Fab 21, and while it is an important milestone, it is a formality, as this is a part of the $165 billion expansion plan that the company introduced last year. What is more important is that TSMC's Fab 21 earned $514 million in profit last year, according to Yeh Chun-Hsien, Taiwan National Development Council (NDC) Minister. Making a profit in a new fab in the first year of full-scale operation is quite a big deal for foundries.
TSMC informed Taiwanese officials that the startup phase of its first Arizona fab proceeded more smoothly than originally projected, which strengthens confidence in the long-term viability of the site, according to Yeh Chun-hsien. At the same time, the company continues to deal with multiple operational difficulties in the U.S., including limited water availability, labor shortages, visa complications for foreign employees, concerns about long-term electricity supply, and regulatory compliance, the report claims.
