© Reuters.
PHOENIX – Taiwan Semiconductor Manufacturing Co (TSMC) has finalized an agreement with labor unions in Arizona, marking a significant step forward in the development of its $40 billion chip manufacturing facility in Phoenix. The settlement, reached following extensive negotiations, involves the Arizona Building and Construction Trades Council, which represents a substantial portion of the workforce at the construction site.
The agreement, led by President of the Trades Council Aaron Butler and President of TSMC Arizona Brian Harrison, establishes a committee dedicated to ensuring compliance and strategizing for future workforce requirements. This move comes as TSMC prepares to capitalize on the upcoming dispersal of Chips Act funding, where it is poised to be a major beneficiary.
Key aspects of the accord include:
- Commitment to prioritizing local hiring while also considering the recruitment of foreign expertise to address skill shortages.
- Implementation of workforce training programs.
- Enhancements to safety transparency measures at the construction site.
The Phoenix project is a significant undertaking for TSMC, with groundbreaking having taken place back in 2021. The company has faced challenges, including mass production delays announced in July that have pushed production targets to early 2025. These delays were confirmed by TSMC CEO C. C. Wei.
The collaboration with local labor unions is expected to play a crucial role in the completion of advanced chipmaking facilities, which are critical to addressing global semiconductor shortages.
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