TSMC CEO is optimistic about Arizona chip quality despite challenges, most advance tech will remain in Taiwan

TSMC faces challenges in the US but remains optimistic about chip quality.

: TSMC CEO C.C. Wei remains optimistic about achieving high chip quality from its new U.S. facilities in Arizona, but faces regulatory and logistical challenges. Despite a $65 billion investment, most advanced tech remains in Taiwan due to complex regulations and higher costs in the U.S. Significant steps include relocating workers and establishing rules with local governments to facilitate the project. The U.S. government supports with a $6.6 billion grant, but top-tier tech will stay in Taiwan.

TSMC is investing $65 billion in three factories in Arizona, yet the company faces significant challenges in establishing advanced chip production in the U.S. CEO C.C. Wei highlighted that complex compliance, construction regulations, and permitting requirements in the U.S. have extended the timeline of their projects compared to Taiwan. Despite these hurdles, Wei remains optimistic about the quality of chips from the Arizona facilities, citing confidence in achieving the same level of quality as in Taiwan with the utilization of the N4 process technology.

To navigate the complex U.S. regulatory landscape, TSMC invested $35 million to collaborate with local governments and establish 18,000 rules. Additionally, to address the labor shortage, workers were relocated from Texas to Arizona, incurring further costs. Although there have been significant challenges, TSMC’s plan for its first fab began high-volume production in late 2024, and facilities for more advanced technologies like N3, N2, and A16 nodes are on track.

The U.S. government has provided a $6.6 billion grant as part of its strategy to diversify chip manufacturing geography, yet the most advanced manufacturing will remain in Taiwan for now. Despite the financial support, Wei discussed at a recent event that top-tier chip technology is not expected to move to the U.S. as quickly as anticipated. This decision aligns with TSMC's prior stance on concentrating its most advanced facilities in Taiwan.