The Intel AZ fab in Chandler typically has the best yields out of all Intel fabs. TSMC likely thought they were tapping into that labor market when building in Phoenix. However they built on the other side of the metropolitan area. It’s an hour drive from the Chandler Intel facility to TSMC without traffic. With traffic, it’s an hour and a half. Any established Intel engineer isn’t going to give up their 30min daily commute for a 3 hour round trip commute.<p>I’ve also heard that the electrical unions will only work 9-5, M-F, and demand a 3 day lead time. Intel has just learned to incorporate that into their planning, while TSMC attempted to bypass the union. Expect TSMC is either adapting, or the AZ politicians have interceded with the unions.
Old article (2/Apr/2024), superseded by analysis from 23/Apr/2024:<p><a href="https://restofworld.org/2024/tsmc-arizona-expansion/" rel="nofollow">https://restofworld.org/2024/tsmc-arizona-expansion/</a>