Furthermore, due to this talent shortage, additional engineers from Taiwan must be hired, trained, and deployed to America to make TSMC Arizona function (with doubled salaries and extra benefits to boot).

Kevin Xu:

These trainings are not some two-to-four week corporate offsites, but up to one and a half years long!

Yet, despite all this extra cost and personnel hassle, Chang believes this is a “very good sign” and the right thing to do. That’s because these are the “people problems” and “cultural problems” that he learned the hard way 25 years ago when trying to open TSMC’s first American fab, located in Camas, Washington – an experience he called “a dream fulfilled became a nightmare fulfilled”. TSMC Arizona is now investing up front to avoid the same mistakes.

Beyond the talent shortage problem, there is also an equipment shortage and supplier shortage problem, so much so that TSMC has been shippingas many tools and equipment as possible, directly from Taiwan to Arizona. TSMC has voiced these and other concerns in a letter last month, sent to the NIST bureau of the Commerce Department (an agency I happened to have served in during the Obama administration). Of course, you wouldn’t hear about any of this if you only listen to Gina Raimondo.