Arizona Labor Spat Signals Challenges for U.S. Chip Manufacturing

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reliance on imported chips and strengthen domestic manufacturing to better compete with China. Meeting those goals will hinge not only on drawing the world’s biggest chip manufacturers to the U.S., but also recruiting and developing the technical expertise to build and operate the new plants. In Arizona, however, construction has been delayed by a shortage of skilled workers, TSMC says, and it is seeking to bring in workers from Taiwan to get construction back on track.

“We are encountering certain challenges as there is an insufficient amount of skilled workers with…specialized expertise," TSMC Chairman Mark Liu said during the company’s July 20 second-quarter earnings call. Liu’s remarks drew a sharp rebuke from Arizona trade unions, who say bringing in workers from overseas would undermine one of the key goals of the Chips Act—to create more domestic jobs in the industry. “TSMC has shown a lack of respect for American workers," the Arizona Building and Construction Trades Council said in a letter to members of Congress, asking them to block the issuance of visas to Taiwanese workers.

Around 1,500 members sent copies of the letter to Washington. The council is an umbrella organization for 14 trade unions representing pipe fitters, electricians, metals workers and others. The group’s members make up 25% to 30% of about 12,000 workers currently on the Phoenix site, said spokeswoman Brandi Devlin.

TSMC says its intention was to bring in workers on a temporary basis and it wasn’t seeking to cut Arizona workers out of jobs. “This small group of experienced specialists will share experience and exchange knowledge with the locals, enabling the larger objective to localize the U.S. supply chain," TSMC said.