Taiwan Semiconductor (NYSE: TSM) Intends To Produce Chips Using Cutting-Edge Nanotechnology in Arizona

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Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: TSM) drops over 1.92% in pre trading session on Monday as the company’s founder Morris Chang said that Although the plans are not yet finalized, it intends to produce chips using cutting-edge nanotechnology at its new factory in the U.S. state of Arizona.

A $12 billion facility is being built in Arizona by Taiwanese chipmaker, the largest contract chipmaker in the world and a significant supplier to Apple Inc. TSMC announced plans to expand its Arizona chip manufacturing facilities last year, and Reuters reported that the company had held discussions about whether its next facility should be more advanced, able to produce chips with 3-nanometer technology rather than the slower, less-efficient 5-nanometer chips that will be produced when the facility starts up.

After returning from the APEC conference in Thailand, Chang told reporters in Taipei that the 3-nanometer factory will be situated on the same Arizona location as the 5-nanometer unit.

Although Chang departed from TSMC, he continues to play a significant role in the organization and the larger chip business. “Three-nanometer, TSMC right now has a strategy, but it has not been entirely finalized,” Chang said.

“Phase two of the project in Arizona is almost finished. Phase one is at 5 nanometers, while phase two is at 3 nanometers.”

The most valuable publicly traded business in Asia, TSMC, declined to comment.

On December 6, the business will host a “tool-in” ceremony in Arizona.

Along with TSMC clients, vendors, and U.S. Commerce Secretary Gina Raimondo, Chang said he would be present.

President of the United States Joe Biden has also been invited, but Chang said he was unsure if he would attend.

As China increases military pressure to bolster its sovereignty claims, Taiwan’s dominating position as a manufacturer of semiconductors used in technology ranging from cellphones and vehicles to fighter planes has raised concerns that the world is becoming overly dependent on the island.

Incentives totaling billions are being offered by both the US and Europe to get businesses to produce chips closer to home, particularly Taiwanese enterprises.

According to Chang, people have just recently realized how vital chips are.

Many individuals are envious of Taiwan’s top-notch semiconductor production, he claimed. So there are also a number of people that want to increase chip production in their country for a variety of reasons, including national security or profit.