TSMC, Intel suppliers delay U.S. plants on surging costs, labor crunch

At least 5 chemical makers slow expansion as industry awaits CHIPS Act funds

20240318 Intel Wafer

Rebuilding America's chip supply chain is shaping up to be a bigger challenge than expected, despite hefty investments by TSMC, Intel and their suppliers.  © Intel/AP

CHENG TING-FANG and LAULY LI, Nikkei tech correspondents

TAIPEI -- At least five suppliers to Taiwan Semiconductor Manufacturing Co. and Intel have delayed construction of facilities in Arizona, a sign that rebuilding America's chip supply chain is a bigger challenge than expected.

Chemical and material makers LCY Chemical, Solvay, Chang Chun Group, KPPC Advanced Chemicals (Kanto-PPC) and Topco Scientific all announced plans and bought land to build facilities in Arizona after the world's two top chipmakers, TSMC and Intel, rolled out their own multi-billion-dollar investments in the state.

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