Tuesday 15th of February 2022 07:12:27 AM

Taiwan Semi rises even as U.S. chip plant is behind schedule: report

Taiwan Semiconductor (NYSE:TSM) shares rose in early trading on Tuesday, even as a report suggested that construction on its U.S.-based advanced chip plant was behind schedule, citing delays linked to the pandemic and an ongoing labor crunch. According to Japanese news outlet Nikkei, construction on the plant is three to six months behind schedule. Construction on the plant, which is being built in northern Phoenix, Arizona, started in June 2021. The plant is expected to begin production in 2024 and marks TSM's first U.S.-based plant in 20 years. The fab is expected to produce 5 nanometer sized chips for a number of advanced applications, including artificial intelligence. In May 2021, Reuters reported that TSM could build as many as six fab plants at the Arizona site over a 10-to-15-year period. Taiwan Semi shares were higher in Tuesday trading, gaining nearly 2% to $122.16. Taiwan Semiconductor did not immediately respond to a request for comment from Seeking Alpha. In January, Taiwan Semiconductor's Chief Executive C.C. Wei said it would spend between $40 billion and $44 billion in capital expenditures this year, as the world looks to alleviate a supply crunch for semiconductors. Earlier this month, Morgan Stanley upgraded Taiwan Semiconductor to overweight, citing several factors, including bigger opportunities from Apple (NASDAQ:AAPL), Intel (NASDAQ:INTC) and Sony (NYSE:SONY).

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