Chipmaker TSMC stops making chips in Arizona, which is bad news for Biden.

The company says that making chips won’t start next year because there aren’t enough skilled workers.

Plans have been made by the White House to make more chips in the US.

It comes as a trade dispute between Washington and Beijing over tech keeps getting worse.

Friday, shares of TSMC were down more than 3% in Taiwan.

On Thursday, TSMC Chairman Mark Liu said that the company’s factory in Arizona, in the south west of the US, would not start making advanced microprocessors until 2025.

During a presentation on earnings, Mr. Liu said that the plant, which has been under construction since April 2021, was having trouble finding workers with the “specialized expertise” needed to put equipment in a semiconductor-grade facility.

He also said that the company was “working to improve the situation” by, among other things, sending experienced technicians from Taiwan to the US for a short time to train trained workers there.

TSMC also thinks that sales will go down by 10% this year because there will be less desire for semiconductors.

Compared to the same time last year, the company’s revenues dropped by about 23%, to 181.8 billion Taiwanese dollars ($5.8 billion; £4.5 billion).

US companies are “less optimistic” about doing business in China.
A Taiwanese chip giant spends $40 billion on a plant in the US
The first time TSMC said it would build a plant in Arizona was in 2020, when Donald Trump was still in office.

In December of last year, the company said it would spend $40 billion (31.1 billion pounds) in the project. This was one of the biggest foreign purchases the United States has ever made.

At the time, Mr. Liu said that the first of TSMC’s two factories for making semiconductors in Arizona would be up and running by 2024 and the second by 2026.

Due to a long-running disagreement over technology, the US has taken a number of steps against China’s chip-making industry and spent billions of dollars to help America’s chip-making industry.

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