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TSMC’s $40 billion Arizona chip project faces new challenges.

The Taiwanese chip maker is expecting production delays at its second semiconductor plant in Phoenix, Arizona, pushing its target for volume production from 2026 to either 2027 or 2028. TSMC originally announced the facility would produce advanced 3nm chips, but now says the chip type isn’t determined yet.

This update follows previous production delays at its first Arizona factory, which TSMC blamed on labor shortages.