TSMC Starts Commercializing Next-Gen Chips To Tap Growing Demand From iPhones, Internet Servers And Supercomputers

Taiwan Semiconductor Manufacturing Company Ltd TSM kicked off mass production of next-generation chips Thursday, ensuring the island's status as the linchpin of critical technology.
The primary chipmaker for Apple Inc AAPL began bulk production of advanced 3-nm chips at its Tainan campus in southern Taiwan, Bloomberg reports.
TSMC geared up on the production of technology likely to control the following lineup of cutting-edge devices from iPhones to internet servers to supercomputers.
Also Read: Apple Chief Deepens Collaboration With TSMC's US Plants
TSMC Chairman Mark Liu expressed confidence in the longer-term outlook for chip demand and promised to build future generations of 2-nm chips in the Taiwanese cities of Hsinchu and Taichung.
"The semiconductor industry will grow rapidly over the next decade, and Taiwan will surely play an even more critical role in the global economy," Liu said. Demand for the 3-nm chips is "very strong."
Taiwan is home to more than 90% of the leading-edge chip manufacturing capacity.
TSMC had shared plans to offer 4-nm chips at a new Arizona plant in 2024 and 3-nm chips at a second U.S. plant in 2026.
TSMC also ramped up capacity in Japan and explored sites in countries like Germany.
Samsung commercialized 3-nm semiconductors in June to catch up to TSMC in the contract chipmaking business and tap the growing demand for high-performance devices that consume less power.
TSMC's growing dominance of high-end chipmaking coincides with U.S. sanctions on China's semiconductor industry.
Price Action: TSM shares traded higher by 1.22% at $73.95 on the last check Thursday.