Taiwan semiconductor (NYSE:TSM) shares rose in early trading on Tuesday, even as a report suggested construction on its U.S.-based advance the chip factory was behind schedule, citing pandemic-related delays and an ongoing labor shortage.
According to a Japanese media Nikkeithe construction of the factory is three to six months behind schedule.
Construction of the plant, which is being built in North Phoenix, Arizona, began in June 2021. The plant is expected to begin production in 2024 and marks TSM’s first U.S. plant in 20 years.
The factory is expected to produce 5 nanometer chips for a number of advanced applications, including artificial intelligence. In May 2021, Reuters reported that TSM could build up to six manufacturing plants at the Arizona site over a 10 to 15 year period.
Shares of Taiwan Semi were higher in Tuesday trading, gaining nearly 2% to $122.16.
Taiwan Semiconductor did not immediately respond to a request for comment from Seeking Alpha.
In January, Taiwan Semiconductor chief executive CC Wei said he would spend $40 billion to $44 billion on capital spending this year as the world seeks to ease semiconductor supply shortages. .
Earlier this month, Morgan Stanley was overweight Taiwan Semiconductor, citing several factors including greater opportunities from Apple. (NASDAQ:AAPL), Intel (NASDAQ: INTC) and Sony (NYSE:SONY).