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Wendell Huang, TSMC's Senior Vice President and Chief Financial Officer (CFO), listens to reporters' questions during the company's second-quarter earnings conference held in Taipei, Taiwan, on July 16 (local time). / Courtesy of Reuters, Yonhap News

Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturer), has decided to invest an additional 100 billion dollars (approximately 148 trillion won) in its production facilities in Arizona to meet the long-term growth in demand for artificial intelligence (AI) semiconductors, bringing its total investment scale to 265 billion dollars (approximately 392.9 trillion won). However, TSMC Chief Financial Officer (CFO) Wendell Huang noted that several challenges remain, including a shortage of construction labor.

According to Reuters on July 20 (local time), CFO Huang stated in an interview conducted right after the second-quarter earnings release on July 16, "We are satisfied with the progress of the Arizona project and are expanding our investment scale." Expressing gratitude for the U.S. government's support, he added, "We anticipate that long-term demand from our customers will continue."

According to Huang, the first Arizona plant is currently operational and has achieved yields on par with those of its Taiwan headquarters. The second plant is awaiting equipment installation, while construction for the third plant and preparatory work for the fourth plant and advanced packaging facilities are also underway.

Once the project is complete, the Arizona site will house a total of 12 manufacturing and packaging facilities, along with one research and development (R&D) center. However, a detailed completion schedule was not disclosed.

Physical constraints, such as a shortage of local construction labor and infrastructure, remain challenges. Huang stated that the company would cooperate closely with the U.S. government to address these issues.

Investment within Taiwan's mainland is also expanding. TSMC plans to build 13 advanced manufacturing and packaging plants in Taiwan over the coming years.

"We are prioritizing Taiwan's limited land resources for the development of cutting-edge technology," Huang explained. "For cutting-edge technologies, where close collaboration between R&D and manufacturing operations is essential, we will stabilize them in Taiwan first before considering overseas transfer."

TSMC, which has maintained a monopoly position in the foundry market, is facing pursuit from competitors such as Samsung Electronics, which is riding a recovery in the memory market, and Intel, which enjoys backing from the U.S. government. Regarding the competitive landscape, Huang expressed confidence, saying, "While our competitors possess excellent capabilities, our business model and technological competitiveness hold the upper hand."

                                                                                                          Lee Jeong-eun