The Taiwan Semiconductor Manufacturing Company (TSMC) reached an agreement with the Arizona Building and Construction Trades Council (AZBTC) on Wednesday, resolving a labor dispute that began when TSMC brought Taiwanese workers to complete the facility after claiming Arizona lacked the necessary skilled workforce.
An agreement struck between the parties after months of negotiations will see the number of Taiwanese professionals involved in building the TSMC semiconductor facility in Phoenix severely limited, with the union acceding that “circumstances may require” Taiwanese officials with “specialized experience,” according to a Bloomberg report citing a joint statement.
AZBTC President Aaron Butler called the agreement a “win for Arizona workers” and TSMC’s timeline, according to the outlet, which likewise reported TSMC Arizona President Brian Harrison acknowledged Arizona “union members have the critical skills necessary to help us complete our two advanced-chipmaking fabs,” and called for “a new chapter of partnership and collaboration.” AZBTC boasts more than 3,000 members.
Because the facility is being built with money from the CHIPS Act, TSMC must employ citizens of the United States when the facility is complete. However, the money came with no requirements for Americans to build the facility, and earlier this year, TSMC brought about 500 Taiwanese professionals into the country after seemingly blaming Arizona workers for delaying the plant until 2025.
As recently as October, it was reported that approximately half of those working on the Phoenix facility were Taiwanese nationals, potentially underscoring benefits received by the union.
Before that, in September, it was reported that TSMC will not manufacture complete semiconductors in Arizona and will instead send incomplete products back to Taiwan for a complicated “packaging” process that experts claim is not possible in Phoenix.
Around the same time, TSMC was reportedly asking vendors to delay deliveries to Phoenix. Reports partially attributed the purported delays to lower consumer desire for products containing semiconductors, which are widely used in most modern electronics.
President Joe Biden highlighted the Phoenix semiconductor facility during an ad campaign for his re-election that touted a “manufacturing boom” in Atlanta, specifically crediting “laws that Joe Biden got passed” for the construction of new semiconductor facilities.
Despite TSMC’s difficulties, two more semiconductor companies announced new investments in Arizona this month.
Arizona-based Amkor Technology announced a $2 billion packing and test facility in Peoria that will be 500,000 square feet and create 2,000 jobs, while Dutch semiconductor company ASM International said it will invest more than $320 million into a new Scottsdale campus.
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Tom Pappert is the lead reporter for The Tennessee Star, and also reports for The Georgia Star News, The Virginia Star, and The Arizona Sun Times. Follow Tom on X/Twitter. Email tips to [email protected].
