TSMC factories in two cities in very different situations: the U.S. project delayed the start of construction, the Japanese project on schedule to start production

It's a landmark feat for a country known for its industrial policies. In less than two years, a $8.6 billion semiconductor plant the size of 40 American soccer fields has risen in the local cabbage patch.

The Japanese government is eager to enhance the country's status as a chip manufacturing center, not only to the Taiwan Semiconductor Manufacturing Co. provided more than 3 billion U.S. dollars in subsidies, but also to help convene thousands of workers to build the plant. This factory is operated by TSMC Japan Advanced Semiconductor Manufacturing and will start mass production on schedule this year.

Across the Pacific Ocean in Phoenix, USA, TSMC is also building a semiconductor plant, but the situation there is a little different.

Biden government has not yet announced to the company to provide financial assistance. TSMC has encountered resistance in bringing in the Taiwanese experts needed to build the plant. Moreover, the company has now changed its original plan, now proposed its first U.S. factory start date for 2025 instead of this year, while delaying the start of the second factory by at least a year, to 2027 or later.

Nonetheless, the difference in timing suggests that there is a gap in experience and funding between the U.S. and Japan when it comes to government-led high-tech investments. According to people involved in both projects, the U.S. government, for its part, has imposed additional conditions that will slow down the process.

TSMC chip manufacturing equipment supplier Tokyo Electron (Tokyo Electron), the chief executive officer of Kawai Toshiki (Toshiki Kawai) said, "I think there is a culture of speed in Asia." $Taiwan Semiconductor(TSM.US)$ $Direxion Daily Semiconductor Bull 3x Shares ETF(SOXL.US)$