TSMC Begins Commercialization of Next-Gen Chips to Take Advantage of Growing Demand for iPhones, Internet Servers and Supercomputers – Taiwan Semiconductor (NYSE:TSM)

  • Taiwan Semiconductor Manufacturing Company Ltd TSM began mass production of next-generation chips on Thursday, securing the island’s status as a critical technology mainstay.
  • The primary manufacturer of chips for Apple Inc AAPL has begun mass production of advanced 3nm chips at its Tainan campus in southern Taiwan, Bloomberg news.
  • TSMC has focused on making the technology that will likely power the next range of high-end devices from iPhones to Internet servers to supercomputers.
  • Also read: The head of Apple deepens cooperation with the American plants of TSMC
  • TSMC Chairman Mark Liu expressed confidence in the longer term for chip demand and has promised to manufacture future generations of 2nm chips in the Taiwanese cities of Hsinchu and Taichung.
  • “The semiconductor industry will grow rapidly in the next decade, and Taiwan will certainly play an even more important role in the global economy,” Liu said. Demand for 3nm chips is “very strong.”
  • Taiwan is home to more than 90% of the high-end chip manufacturing capacity.
  • TSMC had joint plans to offer 4nm chips in new factory in Arizona in 2024 and 3nm chips in a second US factory in 2026.
  • TSMC has also increased capacity in Japan and explored sites in countries such as Germany.
  • Samsung commercialized 3nm semiconductors in June to catch up with TSMC in contract chip manufacturing and capitalize on growing demand for high-performance, lower-power devices.
  • TSMC’s growing dominance in high-end chip manufacturing coincides with the US sanctions on China’s semiconductor industry.
  • Price promotion: Shares of TSM were trading up 1.22% at $73.95 at last check.

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