Taiwan Semiconductor Manufacturing Co (NYSE:TSM) and Intel Corp (NASDAQ:INTC) have encountered unexpected hurdles to bolster the American semiconductor supply chain, as evidenced by construction delays from at least five critical suppliers in Arizona.
These suppliers, namely LCY Chemical, Solvay, Chang Chun Group, KPPC Advanced Chemicals (Kanto-PPC), and Topco Scientific, had initially committed to establishing facilities in the state following TSMC’s and Intel’s announcement of multi-billion-dollar investments.
However, their plans have been paused or significantly downscaled due to soaring construction costs, labor shortages, and other operational challenges, Nikkei Asia reports.
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The decision to delay or scale back these projects is multifaceted. Surging expenses for materials and labor, a general scarcity of construction workers, and a broader influx of investment into Arizona have all contributed to a tightening building sector.
Additionally, the pace of expansion by Intel ...