Taiwan Semiconductor's Arizona Factory Hit Hard by $441 Million Loss Due to Supply Chain Issues

Reported 2 days ago

Taiwan Semiconductor Manufacturing Co. reported a significant loss of approximately $441 million in 2024 at its Arizona factory, the largest since its inception, primarily due to challenges in the supply chain and high labor costs in the U.S. The factory's heavy reliance on imported materials increased logistics expenses, in contrast to its profitable facility in Nanjing, China, which benefited from a stable industrial ecosystem. Although U.S. chip design is advanced, the manufacturing costs in Arizona are considerably higher than in Taiwan, prompting concerns over the viability of domestic semiconductor production.

Source: YAHOO

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