Fact Check: does it take 36 months for tsmc to build more factories?

Does It Take 36 Months for TSMC to Build More Factories?

Introduction

The claim under scrutiny is whether Taiwan Semiconductor Manufacturing Company (TSMC) takes 36 months to build new factories. This assertion raises questions about the timelines associated with semiconductor manufacturing facilities, particularly in the context of TSMC's recent expansion efforts in the United States.

What We Know

1. Construction Timeline: TSMC has begun construction on its Arizona chip factory, which is part of a larger investment plan. The initial factory was expected to start production in 2025, but there have been subsequent delays pushing the timeline to 2026 for the second factory and potentially 2027 or 2028 for the first factory's full operational capacity 2610.

2. Cost and Duration: Reports indicate that building semiconductor fabs in the U.S. can take significantly longer and cost more than in Taiwan. For instance, a study suggests that construction in the U.S. can take about 38 months in total, which includes both the construction start and operational readiness 8.

3. Current Projects: TSMC's plans include multiple factories in Arizona, with a total investment of around $40 billion. The company has faced challenges that have led to delays in their construction schedules 510.

4. Comparative Analysis: According to various sources, the construction of semiconductor factories in the U.S. is generally more complex and time-consuming than in Taiwan, where TSMC is headquartered. This complexity is attributed to higher costs and regulatory environments 8.

Analysis

The claim that it takes TSMC 36 months to build factories appears to be grounded in the realities of semiconductor manufacturing timelines, particularly in the U.S. However, the specifics can vary significantly based on multiple factors, including location, technology, and regulatory hurdles.

1. Source Reliability: The sources cited include reputable news organizations like Reuters and The New York Times, which have established credibility in reporting on technology and business. However, it is essential to note that some articles may reflect the authors' interpretations or the companies' press releases, which can introduce bias 2345.

2. Conflicting Information: While some reports suggest that the construction of a factory can take around 36 months, others indicate that TSMC's specific projects in the U.S. have faced delays that extend beyond this timeframe. For example, the second Arizona factory's production timeline has already been pushed back to 2027 or 2028 3610.

3. Methodology Concerns: The methodology behind estimating construction timelines can vary. Some sources may rely on industry averages, while others may focus on specific projects. This variability can lead to discrepancies in reported timelines. Additionally, factors such as labor availability, supply chain issues, and local regulations can significantly impact construction durations.

4. Need for Additional Information: More detailed information about TSMC's project management strategies, specific timelines for each factory, and the factors contributing to delays would provide a clearer picture of the construction process. Furthermore, insights into the experiences of other semiconductor manufacturers could help contextualize TSMC's timelines.

Conclusion

Verdict: Unverified

The claim that TSMC takes 36 months to build factories remains unverified due to conflicting timelines and a lack of definitive evidence. While some reports suggest that construction can take around 36 months, TSMC's current projects in the U.S. have experienced delays that extend beyond this timeframe, with estimates indicating that the construction of semiconductor fabs can take up to 38 months or longer.

This uncertainty arises from various factors, including the complexity of construction in the U.S., regulatory challenges, and the specific circumstances surrounding TSMC's projects. The available evidence does not provide a clear consensus on the timeline, highlighting the need for further information and context.

Readers are encouraged to critically evaluate information and consider the nuances involved in claims about construction timelines, especially in a rapidly evolving industry like semiconductor manufacturing.

Sources

1. TSMC - Wikipedia. Retrieved from https://en.wikipedia.org/wiki/TSMC
2. TSMC says has begun construction at its Arizona chip factory site | Reuters. Retrieved from https://www.reuters.com/technology/tsmc-says-construction-has-started-arizona-chip-factory-2021-06-01/
3. Plans to Expand U.S. Chip Manufacturing Are Running Into Delays | The New York Times. Retrieved from https://www.nytimes.com/2024/02/19/technology/semiconductor-chip-factories-delays.html
4. Trump and TSMC announce $100 billion plan to build five new US factories | Reuters. Retrieved from https://www.reuters.com/technology/tsmc-ceo-meet-with-trump-tout-investment-plans-2025-03-03/
5. TSMC Will Receive $6.6 Billion to Bolster U.S. Chip Manufacturing | The New York Times. Retrieved from https://www.nytimes.com/2024/04/08/us/politics/tsmc-taiwan-chips-grants.html
6. TSMC delays $40B Arizona chip factory again | Construction Dive. Retrieved from https://www.constructiondive.com/news/tsmc-deal-arizona-labor-union-chip-factory/704847/
7. TSMC says Arizona fab is now ahead of schedule; signs semiconductor talent agreement with Kyushu University | DCD. Retrieved from https://www.datacenterdynamics.com/en/news/tsmc-updates-arizona-fab-production-timeline-signs-semiconductor-talent-agreement-with-kyushu-university/
8. US fab construction costs twice as much, takes twice as long as Taiwan | Tom's Hardware. Retrieved from https://www.tomshardware.com/tech-industry/building-a-chipmaking-fab-in-the-us-costs-twice-as-much-takes-twice-as-long-as-in-taiwan
9. TSMC Advances US 2nm Production Timeline Amid Trump Administration | Biz Chosun. Retrieved from https://biz.chosun.com/en/en-it/2025/02/19/RX3DLJRIOJA5PG62D7WMTYHBZ4/
10. TSMC delays second Arizona chip plant to 2027 or 2028 | Manufacturing Dive. Retrieved from https://www.manufacturingdive.com/news/tsmc-delays-second-arizona-chip-factory-to-2027/704937/