00:00Taiwanese chip giant TSMC's Arizona plant is getting on its feet, turning a profit
00:05of US$150 million in the first half of the year.
00:10But the project of making advanced chips in the US has hit big speed bumps, and as both
00:14Taiwanese supply chain partners and TSMC's American staff are finding out, it's no
00:20simple task to move an operation that works well in Taiwan to the other side of the world.
00:25Cultural differences, especially around issues like working hours, have flared up.
00:30And staffing the FAB has been a persistent problem, too.
00:33Some local workers who quit the FAB filed a lawsuit alleging discrimination in favor of
00:38their East Asian colleagues, a claim that TSMC says is not true.
00:43But however you look at it, those in the chip industry say getting the Arizona FAB properly
00:47staffed hasn't been easy.
00:49Getting work visas for Taiwanese staff is proving to be a massive hurdle.
01:12Each now costs US$100,000.
01:15But long wait times and a lottery system make things even more complicated.
01:20And once they're in the US, they have to pay both US and Taiwan taxes on their income,
01:25something experts hope to see change.
01:27If this Taiwan U.S. double tax relief bill can actually pass, then it would be beneficial
01:34for just a whole variety of industries.
01:37Whether it is manufacturing, whether it is R&D, wholesale, distribution, services, those
01:45are going to benefit.
01:46While American staff may face culture shock in the workplace, Taiwanese staff and their
01:51families have their own troubles, adjusting to daily life in an unfamiliar place.
01:56For many, the relocation will be temporary.
02:01The proportion of Taiwanese staff is expected to go down, as operations in the US will be
02:06expected to go down.
02:08But for now, there's more to be done.
02:15A delayed second factory could be finished in the next two to three years.
02:22And just Thursday, TSMC Chair and CEO CC Wei said the company has a new large piece of land
02:29for expansion.
02:30On top of the $65 billion US dollars TSMC has invested in Arizona, it's also promising
02:37$100 billion US dollars more for more fabs, two assembly plants, and an R&D center.
02:43Despite delays and cultural friction, the company isn't backing out of what it and the US government
02:50see as an important expansion into the American Southwest.
02:52Klein Wang and John Van Trieste for Taiwan Plus.
02:59Klein Wang and John Van Trieste for Taiwan Plus.
03:12Klein Wang and John Van Trieste for Taiwan Plus.
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