TSMC begins mass production of cutting-edge chips in Taiwan

TAINAN, Taiwan—Chip maker Taiwan Semiconductor Manufacturing Company Limited (TSMC) began mass production of its most advanced chips in southern Taiwan on Thursday, with the company’s chairman continuing to expand production capacity on the island. said.

The long-awaited mass production of chips with 3-nanometer technology is in the spotlight on the domestic and international investment plans of the world’s largest contract chip makers. TSMC is the dominant maker of advanced chips used in everything from mobile phones to fighter jets.

“TSMC continues to invest heavily in Taiwan, while maintaining technology leadership and continuing to invest and thrive in the environment,” said TSMC Chairman Mark Liu. said at a ceremony to mark the expansion.

Liu said the demand for the company’s 3-nanometer chips is “very strong,” driven by new technologies such as 5G and high-performance computing products. He didn’t elaborate.

Earlier this month, TSMC announced plans to more than triple its investment in a new Arizona factory to $40 billion. This is his one of the largest foreign investments in US history.

The company, whose main customers include Apple and Nvidia, is also building a chip factory in Japan and said it was in the early stages of exploring possible expansion to Germany.

As an apparent response to concerns that TSMC’s overseas investments would undermine Taiwan’s key position in semiconductors, Liu said production was planned by TSMC to “develop advanced technology and expand its capabilities in Taiwan in a specific way.” It is showing that we are taking serious actions.

The Taiwanese government has dismissed concerns about the chip industry’s tendency to “say goodbye to Taiwan,” saying Taiwan’s position as a major semiconductor producer and maker of cutting-edge chips is stable.

Mass production has been successful and yields are good, Liu said, adding that the new 3-nanometer technology will produce end products with a market value of $1.5 trillion within five years.

TSMC said it is working on building a fab for its next-generation 2-nanometer chips that will be manufactured in northern and central Taiwan.

TSMC has repeatedly said it will keep most of its manufacturing in Taiwan.