One person died in an explosion at a US factory; TSMC: No impact on operations

According to foreign media reports on May 16, an explosion occurred at TSMC's Phoenix wafer factory in Arizona on the 15th local time in the United States. A chemical truck exploded at the construction site of its factory and the driver died of his injuries.

The report quoted the Phoenix Fire Department as saying that three local fire companies were dispatched to TSMC's Fab 21 near Dove Valley and 43rd Avenue at 2:30 p.m.

According to ABC15 Arizona, there were 20 to 30 fire trucks, ambulances, and investigation vehicles at the scene. At least one person was seriously injured and was sent to the hospital. Because the local police set up a cordon, various TV stations used helicopters to film the scene. A female driver interviewed said that there were thousands of people working here. She heard that someone was injured, but the other situation was uncertain. The relevant authorities are investigating the cause of the accident.

The local media "AZFamily" pointed out in the report that no damage was seen on the exterior of the building, and many employees temporarily returned home. The report also mentioned that TSMC is a semiconductor factory from Taiwan, China, which occupies an area of ​​440 hectares in the local area and will produce important mobile phone chips and automotive chips. Therefore, US President Biden also visited Phoenix.

TSMC's latest response said that the explosion was caused by an abnormality in the sulfuric acid tank truck that was outsourced to the site. An outsourced driver had an accident while checking it, and the explosion caused the man to be seriously injured. TSMC said that the ambulance immediately sent him to the hospital, and the accident site was handed over to the fire department for investigation, and it would not affect operations or projects.

According to a new statement from the local construction union, the driver has died. The Arizona Construction Trades Council, a union alliance of about 3,000 members working on TSMC projects, confirmed the worker's death on the evening of May 15 local time.

TSMC's Arizona plant has been accused of abusing workers and has received serious attention from engineers and industry insiders for numerous reports of poor treatment of workers. There are reports that the company's long-term overtime culture, cruel management style and poor treatment of its engineers at its Taiwan plant have been improperly transferred to American workers, resulting in workers now leaving the new plant due to perceived abuse.

In April last year, a fire broke out at TSMC's Phoenix plant. At that time, TSMC issued an urgent statement to clarify that the fire was caused by flames coming out of the garbage pipe outside the wafer plant, which was brought under control immediately. It was not a fire as rumored online. The incident did not cause any losses to TSMC.

TSMC has been the main beneficiary of the Biden administration's CHIPS Act, receiving billions of dollars from the U.S. government in exchange for bringing semiconductor manufacturing to the U.S. mainland. Geopolitical conflicts have raised concerns in the U.S., who worry that this could undermine the ability to purchase TSMC chips. As a result, the U.S. government has been actively seeking TSMC to build a wafer factory in the United States.

Financial report data shows that as of March 31, 2024, TSMC's consolidated revenue in the first quarter was RMB 132.455 billion, a year-on-year increase of 16.5% and a month-on-month decrease of 5.3%; net profit was RMB 50.397 billion, a year-on-year increase of 8.9% and a month-on-month decrease of 5.5%. Operating profit in the first quarter was RMB 55.656 billion, a year-on-year increase of 7.7%, and an estimated RMB 53.834 billion; gross profit margin in the first quarter was 53.1%, and an estimated 53%.