TSMC begins mass production of 3nm chips

Taiwan Semiconductor Manufacturing Co. has started mass production of next-generation chips. The primary chipmaker for Apple began bulk production of advanced 3-nanometer chips at its Tainan campus in southern Taiwan.

The rollout follows the chipmaker’s announcement that it will offer 4nm chips at a new Arizona plant from 2024 and 3nm chips at a second US plant in 2026. The company is also ramping up capacity in Japan and exploring sites in countries such as Germany.

TSMC Chairman Mark Liu expressed confidence in the longer-term outlook for chip demand and promised to build future generations of 2nm chips in the Taiwanese cities of Hsinchu and Taichung. He said, “The semiconductor industry will grow rapidly over the next decade, and Taiwan will surely play an even more critical role in the global economy. Demand for the 3nm chips is very strong. Mass production of 3-nanometer chips is the fruit of decades-long collaboration with the local supply chain.”

TSMC said its 3nm processes offer better performance than its 5nm chips, while requiring about 35% less power. The 3nm technology is said to help create end products with a market value of $1.5 trillion within five years. Taiwan is home to more than 90% of the manufacturing capacity for the world’s leading-edge chips. Taiwanese President Tsai Ing-wen had said that TSMC’s move to build factories overseas is a sign of Taiwan’s power abroad, rather than a threat to local industry.