TAINAN, Taiwan, Dec 29 (Reuters) – Chipmaker Taiwan Semiconductor Manufacturing Company Ltd (TSMC) (2330.TW) began mass production of its most advanced chips in southern Taiwan on Thursday and chairman of the company said it would continue to increase capacity on the Island.
The long-awaited mass production of chips with 3-nanometer technology comes as attention focuses on the world’s largest contract chipmaker’s investment plans at home and abroad. TSMC holds a dominant position as a maker of advanced chips used in technology from cellphones to fighter jets.
“TSMC maintains its technology leadership while investing significantly in Taiwan, continuing to invest and prosper with the environment,” TSMC Chairman Mark Liu said at a ceremony marking the company’s expansion. production and capacity in the southern city of Tainan.
Liu said demand for the company’s 3-nanometer chip was “very strong,” driven by new technologies including 5G and high-performance computing products. He did not specify.
Earlier this month, TSMC announced it would more than triple its planned investment in its new $40 billion factory in Arizona, among the largest foreign investments in US history.
The Taiwanese company, which counts Apple Inc (AAPL.O) and Nvidia Corp (NVDA.O) among its top customers, is also building a chip factory in Japan and said it was in the early stages of reviewing it. possible expansion into Germany. .
In an apparent response to fears that TSMC’s foreign investment could undermine Taiwan’s key position in semiconductors, Liu said the production was a demonstration that TSMC was “taking concrete steps to develop cutting-edge technology and expand its capacity in Taiwan”.
The Taiwanese government dismissed concerns about a “goodbye Taiwan” trend for the chip industry, saying the island’s position as a major semiconductor producer and maker of the most advanced chips is secure.
Liu said mass production was successful and with good yields, adding that the new 3-nanometer 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-nanometer chips, which were to be manufactured in northern and central Taiwan.
TSMC has repeatedly said that most of its manufacturing will remain in Taiwan.
Reporting by Yimou Lee and Ann Wang; Editing by Stephen Coates
Our standards: The Thomson Reuters Trust Principles.