Chipmaker Taiwan Semiconductor Manufacturing Company Ltd (TSMC), began mass production of its next-generation chips in southern Taiwan and the company’s chairman said it would continue to expand the capacity.
TSMC has a dominant position as a maker of advanced chips used in technology from cell phones to fighter jets.
“TSMC is maintaining its technology leadership while investing significantly in Taiwan, continuing to invest and prosper with the environment,” TSMC Chairman Mark Liu told a ceremony marking the production and capacity expansion in the southern city of Tainan.
Liu said demand for the firm’s 3-nanometre chip was “very strong”, driven by new technologies including 5G and high-performance computing products.
Earlier this month, TSMC said it would more than triple its planned investment at its new Arizona plant to $40 billion, among the largest foreign investments in U.S. history.
In an apparent response to the concerns that TSMC’s foreign investment would undermine Taiwan’s key position in semiconductors, Liu said the production was a demonstration that TSMC was “taking concrete action to develop advanced technology and expand capacity in Taiwan.”
Liu said the mass production was successful and with good yields, adding that the new 3-nanometre technology would create end products with a market value of $1.5 trillion within five years.
TSMC said it was working to build factories for the next generation 2-nanometre chips, which were planned to be manufactured in northern and central Taiwan.