Bruce thought he’d landed his dream job. The young American engineer had been eager for a stable, high-paying job in the semiconductor industry. Then, in late 2020, he received a LinkedIn message from a recruiter for Taiwan Semiconductor Manufacturing Company. Bruce read up on TSMC — the leading global manufacturer of advanced chips — and got excited. The job sounded like he’d be “pushing the boundaries of human technology,” he recalled to Rest of World. TSMC was undergoing a transformation at just about the same time Bruce heard from the recruiter. The coronavirus pandemic was exposing deep faults in supply chains, and a global chip shortage had slowed production of cars, smartphones, and refrigerators around the world. Meanwhile, American policymakers were rallying around what would eventually become the CHIPS and Science Act, a sweeping piece of legislation designed to boost semiconductor manufacturing in the U.S. TSMC, which makes most of its chips in Taiwan, was under pressure to expand its global manufacturing capacities. Bruce would be working as a semiconductor engineer. The recruiter explained that he would first spend more than a year in Taiwan learning the ins and outs of the complex chipmaking process. Then, he’d return to Arizona. There, in a cactus-dotted suburb of Phoenix, TSMC was building a sprawling new factory to make the kind of chips that power iPhones and U.S. fighter jets. He’d be helping bring America’s newest chip factory online. Bruce was in. Inside TSMC’s struggle to build a chip factory in the U.S. suburbs thumbnail Listen to this story https://lnkd.in/e7BrPeuN
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Bruce thought he’d landed his dream job. The young American engineer had been eager for a stable, high-paying job in the semiconductor industry. Then, in late 2020, he received a LinkedIn message from a recruiter for Taiwan Semiconductor Manufacturing Company. Bruce read up on TSMC — the leading global manufacturer of advanced chips — and got excited. The job sounded like he’d be “pushing the boundaries of human technology,” he recalled to Rest of World. TSMC was undergoing a transformation at just about the same time Bruce heard from the recruiter. The coronavirus pandemic was exposing deep faults in supply chains, and a global chip shortage had slowed production of cars, smartphones, and refrigerators around the world. Meanwhile, American policymakers were rallying around what would eventually become the CHIPS and Science Act, a sweeping piece of legislation designed to boost semiconductor manufacturing in the U.S. TSMC, which makes most of its chips in Taiwan, was under pressure to expand its global manufacturing capacities. Bruce would be working as a semiconductor engineer. The recruiter explained that he would first spend more than a year in Taiwan learning the ins and outs of the complex chipmaking process. Then, he’d return to Arizona. There, in a cactus-dotted suburb of Phoenix, TSMC was building a sprawling new factory to make the kind of chips that power iPhones and U.S. fighter jets. He’d be helping bring America’s newest chip factory online. Bruce was in. Inside TSMC’s struggle to build a chip factory in the U.S. suburbs thumbnail Listen to this story https://lnkd.in/d3a4nuY5
Bruce thought he’d landed his dream job. The young American engineer had been eager for a stable, high-paying job in the semiconductor industry. Then, in late 2020, he received a LinkedIn message from a recruiter for Taiwan Semiconductor Manufacturing Company. Bruce read up on TSMC — the leading global manufacturer of advanced chips — and got excited. The job sounded like he’d be “pushing the boundaries of human technology,” he recalled to Rest of World. TSMC was undergoing a transformation at just about the same time Bruce heard from the recruiter. The coronavirus pandemic was exposing deep faults in supply chains, and a global chip shortage had slowed production of cars, smartphones, and refrigerators around the world. Meanwhile, American policymakers were rallying around what would eventually become the CHIPS and Science Act, a sweeping piece of legislation designed to boost semiconductor manufacturing in the U.S. TSMC, which makes most of its chips in Taiwan, was under pressure to expand its global manufacturing capacities. Bruce would be working as a semiconductor engineer. The recruiter explained that he would first spend more than a year in Taiwan learning the ins and outs of the complex chipmaking process. Then, he’d return to Arizona. There, in a cactus-dotted suburb of Phoenix, TSMC was building a sprawling new factory to make the kind of chips that power iPhones and U.S. fighter jets. He’d be helping bring America’s newest chip factory online. Bruce was in. Inside TSMC’s struggle to build a chip factory in the U.S. suburbs thumbnail Listen to this story https://lnkd.in/e7BrPeuN
Inside TSMC’s struggle to build a chip factory in the U.S. suburbs
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https://lnkd.in/gG4hZTwD Having worked in semiconductor fabrication and having worked with many brilliant and driven colleagues, it appears, based on his comments quoted here, that Mr Chang seems to disregard that he was educated in the Semi-Business at Texas Instruments, an AMERICAN company. Conveniently also omitting that the USA dominated Chip making in the 80s and 90s. A few things make it tougher to build chips here of course. Very high on that list is that the USA has environmental protections that must be met and Chip making is an inherently nasty fabrication process. Just as important is that Americans don't treat their career as their "religion". To demean Americans as not up to the task is to completely mis-characterize the situation and a complete failure to admit a different style of management is required in the USA. As a point of reference, Intel, IBM, AMD, TI, Motorola and many others were producing World Class Semiconductors here in the US when TSMC's current crop of Engineers were still getting their diapers changed.
Inside TSMC’s struggle to build a chip factory in the U.S. suburbs
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There's been a lot of talk about U.S. industrial and national security policy around semiconductors, but logistical and operational challenges abound. Here's a deep dive into the TSMC plans in Arizona. 🌵 💡 Strategic Expansion in Arizona: Taiwan Semiconductor Manufacturing Company (TSMC), the world's leading semiconductor manufacturer, has expanded its global footprint with a significant investment in northern Phoenix, Arizona. This new facility, expected to commence production in 2025, was no doubt a bold strategic move to solidify the U.S. semiconductor supply chain amid geopolitical tensions. The Phoenix facility covers over 1,100 acres - the size of 625 football fields and includes state-of-the-art manufacturing capabilities intended to support advanced technologies like 5G and AI. TSMC plans to invest $40 billion, marking one of the largest foreign investments in U.S. manufacturing history. 🤝 Cultural and Operational Challenges: However, transplanting TSMC's intense work culture from Taiwan to the U.S. has presented challenges. The company's traditional work practices, marked by long hours and strict management, have clashed with American work norms, which favor more balance and flexibility. This cultural gap has led to tensions and a learning curve for both Taiwanese and American employees as they adjust to different expectations and work styles. "The Taiwanese create this false sense of urgency with every single task, and they really push 'you need to finish everything immediately,'" explained an American engineer, highlighting the cultural clash. This intense work ethic, while key to TSMC's success in Taiwan, contrasts sharply with American preferences for work-life balance and less hierarchical management styles. "It’s hard to get [American workers] to do things," a Taiwanese engineer in Phoenix told Rest of World. 🔄 As TSMC navigates these challenges, the company's success in Arizona will depend on finding a balance between varying cultural and managerial practices. #TSMC #Semiconductor #Technology #USManufacturing #CulturalIntegration https://lnkd.in/eKXgDHwK
Inside TSMC’s struggle to build a chip factory in the U.S. suburbs
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TSMC gets billions for US chips The push to expand U.S. chip manufacturing continues, with the government awarding up to $11.6 billion to Taiwan Semiconductor Manufacturing Co. (TSMC). The $6.6 billion in grants and up to $5 billion in loans announced Monday will help the world's leading chipmaker, which supplies Apple and Nvidia, build three factories in Arizona. The funding includes $50 million to train local workers and will create more than 20,000 construction jobs, per Commerce Secretary Gina Raimondo. One of the new facilities will produce next-generation 2-nanometer chips, which Raimondo says are vital for AI and the military. TSMC will also increase its total U.S. investments from $40 billion to $65 billion as part of the deal. Intel was awarded up to $20 billion in loans and grants for chipmaking facilities in four states, including Arizona; Samsung is expected to receive about $6 billion in grants. For more coverage of the tech industry, click here to subscribe to Tech Stack, a newsletter from LinkedIn News. #support #moremoney #chipmanufacturing
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The US government is all-in to convince semiconductor companies to expand capacity in the USA. While the United States maintains a significant lead in the field of chip design and research and development, it only contributes to 10% of the world's chip production. In contrast, all advanced chips are developed overseas, with a majority produced by TSMC based in Taiwan. The US has significantly bolstered its investments in advanced chip manufacturing since 2022, positioning the country more competitively. By 2032, it is projected to secure 28% of the market for chips below 10 nanometers. It is excellent news that we are investing in additional capacity, but one challenge is finding a skilled workforce. TSMC postponed its Arizona facility last summer, citing insufficient skilled workers. The company announced that it would need to send technicians from Taiwan to train its US workforce. The SIA estimates the semiconductor industry faces a projected shortfall of 67,000 workers this decade, particularly with a need for more engineers, computer scientists, and technicians. Another concern is that China and the EU are pushing hard to expand their capacity. The risk is that by 2032, we will have much overcapacity! #Tecnology #economy #investing #markets
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Hardware is hard (part umpteen) RestOfWorld: "TSMC’s debacle in the American desert. Missed deadlines and tension among Taiwanese and American coworkers are plaguing the chip giant’s Phoenix expansion." "Bruce would be working as a semiconductor engineer. The recruiter explained that he would first spend more than a year in Taiwan learning the ins and outs of the complex chipmaking process. Then, he’d return to Arizona. "But over the next two years, Bruce came to realize that the reality of working at TSMC wasn’t exactly what he had envisioned. While working on nanometer-level processes to make state-of-the-art chips, he struggled with language barriers, long hours, and a strict hierarchy. Bruce soon began second-guessing what he had signed up for. The plant, which was originally set to begin operating in 2024, fell woefully behind schedule; production at the facility is now set to start in 2025. Bruce, who said he signed a confidentiality agreement with TSMC, requested anonymity for this story. He wasn’t the only one disappointed with TSMC’s progress in Arizona — other U.S. workers who spoke to Rest of World echoed Bruce’s concerns. In the past two years, the company has relocated hundreds of Taiwanese workers and their families to Arizona. Instead of a gleaming new facility, these workers found an active construction site, and a company struggling to bridge Taiwanese and American professional and cultural norms. Over the past four months, Rest of World spoke with more than 20 current and former TSMC employees — from the U.S. and Taiwan — at the Arizona plant. All of them requested anonymity because they were not authorized to speak to the media or because they feared retaliation from the company. In February, Rest of World traveled to Phoenix to visit the growing TSMC complex and spend time with the nascent community of transplanted Taiwanese engineers. The American engineers complained of rigid, counterproductive hierarchies at the company; Taiwanese TSMC veterans described their American counterparts as lacking the kind of dedication and obedience they believe to be the foundation of their company’s world-leading success. Some 2,200 employees now work at TSMC’s Arizona plant, with about half of them deployed from Taiwan. While tension at the plant simmers, TSMC has been ramping up its investments, recently securing billions of dollars in grants and loans from the U.S. government. Whether or not the plant succeeds in making cutting-edge chips with the same speed, efficiency, and profitability as facilities in Asia remains to be seen, with many skeptical about a U.S. workforce under TSMC’s army-like command system. “[The company] tried to make Arizona Taiwanese,” G. Dan Hutcheson, a semiconductor industry analyst at the research firm TechInsights, told Rest of World. “And it’s just not going to work.” RestOfWorld: https://lnkd.in/gzDCWJsu #semicomconductors #tsmc
Inside TSMC’s struggle to build a chip factory in the U.S. suburbs
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Why is everyone freaking out over Intel Corporation? It's the end of an era. Intel reported worse-than-expected quarterly results and issued light guidance for the current period. They then went on to cut 15% of their global workforce. The chipmaker announced plans to cut around 15,000 employees, eliminate its fiscal fourth-quarter dividend and reduce capital expenditures. You might recall Intel has received $8.5 Bn. form the Chips Act. This is a huge sign that we need new American players in the semiconductor industry. Making America great again does not mean funding companies on the decline. A key motivation behind the CHIPS Act was to encourage companies to build fabs on U.S. soil to prevent a supply disruption should China ever invade Taiwan. Why not invest in TSMC more? Or Nvidia more? Americans are not good at manufacturing. TSMC has dominated the leading edge of semiconductor manufacturing in recent years, so all of the world’s fastest processors are physically built in Taiwan. Intel received a significant portion of funding from the CHIPS and Science Act - mostly for the wrong reasons. Intel's projects were expected to create thousands of jobs? They will have to cut even more jobs, let's face it, let's face the reality.
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President Joe Biden announced that the U.S. government made a deal with Taiwanese company TSMC to build three new advanced semiconductor factories in Arizona. In exchange, TSMC will receive $11 billion in grants and loans from the government. The key details: TSMC will invest a total of $65 billion and create over 25,000 jobs. $50 million will be used to develop and train local workers. The U.S. wants to produce 20% of the world's most advanced computer chips domestically by 2030. The government has now made five deals under the CHIPS Act, including $8.5 billion to Intel and $1.5 billion to GlobalFoundries. This deal is important because the U.S. wants to secure its supply of computer chips amidst concerns about Taiwan's situations with China and natural disasters like earthquakes. With shortages of AI chips expected as demand grows rapidly, the U.S. is taking steps to become a leader in the computer chip supply chain. The Spice must flow #semiconductors #TSMC
Statement from President Joe Biden on CHIPS and Science Act Preliminary Agreement with TSMC | The White House
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How Intel is planning to use federal funding to rebuild talent pipelines for semiconductor manufacturing - https://lnkd.in/d_upirvm Intel Corporation CPO Christy Pambianchi says the company is exploring “all the ways that we can expand the qualified workforce and the talent available to come into these jobs.” The federal government is pouring billions of dollars into efforts to strengthen the US’s domestic capacity to produce #semiconductor #chips. The US aims to produce 20% of the world’s most advanced chips by 2030 as part of the CHIPS and Science Act, and the government is tapping companies like Intel to help it achieve this goal.
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