Taiwan Semiconductor Manufacturing Co. (TSMC) is experiencing delays in implementing advanced chip technology at its new Arizona plant.

CEO C.C. Wei attributed the setbacks to regulatory complexities, local construction rules, and permitting requirements, which have doubled construction time compared to similar projects in Taiwan.

The US$65 billion Arizona project – part of TSMC’s plan to build three US factories – supports efforts to boost domestic semiconductor production.

Despite challenges – including skilled labor shortages, supply chain gaps, and additional costs from material constraints – Wei expressed confidence in the plant’s eventual success.

TSMC has implemented 18,000 rules at a US$35 million cost to address regulatory issues and hired experts to streamline processes.

While the US government has provided a US$6.6 billion grant, the Arizona facility is unlikely to produce advanced chips before TSMC’s Taiwan operations.