Taiwanese giant TSMC has started mass producing its cutting-edge 2-nanometre semiconductor chips, the company said in a statement. TSMC is the world's largest contract maker of chips, used in everything from smartphones to missiles, and counts Nvidia and Apple among its clients. TSMC also has been a massive beneficiary in the AI investment scene globally. Nvidia and Apple are among firms pouring many billions of dollars into chips, servers and data centres.
According to the company, the chips will be the "most advanced technology in the semiconductor industry in terms of both density and energy efficiency".
"TSMC's 2nm (N2) technology has started volume production in 4Q25 as planned," TSMC said in the statement on its website.
"N2 technology, with leading nanosheet transistor structure, will deliver full-node performance and power benefits to address the increasing need for energy-efficient computing."
The chips will be produced at TSMC's "Fab 20" facility in Hsinchu, in northern Taiwan, and "Fab 22" in the southern port city of Kaohsiung.
More than half of the world's semiconductors, and nearly all of the most advanced ones used to power artificial intelligence technology, are made in Taiwan.
AI-related spending is soaring worldwide, and is expected to reach approximately $1.5 trillion by 2025, according to US research firm Gartner, and over $2 trillion in 2026 -- nearly two percent of global GDP.
Taiwan's dominance of the chip industry has long been seen as a "silicon shield" protecting it from an invasion or blockade by China -- which claims the island is part of its sovereign territory -- and an incentive for the United States to defend it.
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