US media: TSMC is unlikely to replicate its success in the US
2024-08-13
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Reference News reported on August 12The New York Times website published an article on August 9, analyzing why it is difficult for TSMC to replicate the success of its Taiwan factories in the United States.
The article stated that in May 2020, TSMC, one of the world's largest manufacturers of advanced computer chips, announced plans to build a factory in the suburbs of Phoenix, Arizona, USA. Four years later, the company has not yet started selling semiconductor products manufactured in Arizona.
Initially, the Taiwanese company's move into Arizona was seen as an all-around win: It would boost advanced chip manufacturing in the United States and help TSMC diversify its production away from reliance on Taiwan.
"We keep reminding ourselves that just because we do well in Taiwan doesn't mean we can bring Taiwan's practices here," said Liu Qingyu, the company's director of employee communications and relations.
The article pointed out that in recent interviews, 12 TSMC employees, including senior executives, said that the cultural conflict between Taiwanese managers and American workers has caused frustration on both sides. TSMC is known for its strict working conditions. It is not uncommon to be called to work in the middle of the night to deal with emergencies. In Phoenix, this difference in concept of work requirements has caused some American employees to resign.
The company has pushed back the start date of the factory and now says it expects to start producing chips in Arizona in the first half of 2025.
The Arizona project could also face political threats, the article said. Republican presidential candidate and former President Trump told Bloomberg Businessweek in June that Taiwan had taken the chip industry away from the United States. He did not name TSMC, but criticized the United States for subsidizing Taiwanese companies to manufacture chips in the United States.
In addition to grappling with cultural differences in the workplace, TSMC is preparing to hire skilled workers for the Arizona plant in the coming years. The company is also expanding in Japan and Germany and faces similar challenges.
In 2021, shortly after joining TSMC, engineer Jefferson Paz, who had just received his master's degree from the University of California, San Diego, went to Tainan for 18 months of training.
Back in Arizona, Paz said, employees were asked to do tasks beyond their job descriptions as the plant fell behind schedule. This approach did not go over well with everyone.
TSMC also faces competition for labor in Arizona. Other companies in the region are also competing to find skilled workers to increase production. U.S. chip giant Intel is expanding its factories in the region.
