What are TSMC Efforts to Safeguard Global Dominance

TSMC (Taiwan Semiconductor Manufacturing Co.) began mass manufacturing of 3-nanometer chips. This is an effort to maintain its position as the leading provider of the most advanced semiconductors in the world.

This startup will probably kickstart technology development along with Samsung Electronic Co. The advancement is only available with the help of a new generation of cutting-edge devices, from iPhones to internet servers.

Corporation announced offering 4nm chips at a new Arizona plant in 2024 and 3nm chips at a second US plant in 2026. It rolled out high-performance chips on Thursday in Tainan, southern Taiwan. The company is the primary chipmaker for Apple Inc. It plans to expand its capacity in Japan and investigate sites in other nations, including Germany.

TSMC Chairman Mark Liu said that demand for 3nm chips is “extremely strong,” and the firm will construct 2nm plants in Taiwan’s Hsinchu and Taichung.

TSMC is entering the next generation of chipmaking in the face of a global recession and concern over the consequences of US sanctions on China’s economy, which is experiencing a slump. TSMC’s capital expenditure targets were reduced by at least 10% to $36 billion this year, according to some analysts, resulting in a delay in 2023 expansion.

Concern Grows Over Global Reliance on Taiwan for High-End Tech

More than 90% of the world’s top-edge chip manufacturing is concentrated in Taiwan. However, global policymakers constantly pressure TSMC to shift some production abroad. Consumers, who are increasingly concerned about their technological reliance on an island Beijing has threatened to invade, also played their part.

Taiwan has raised concerns that TSMC’s shift to developing internationally will diminish the island’s long-term strategic significance. On the other hand, TSMC’s efforts to establish facilities overseas indicate Taiwan’s power abroad, rather than a threat to local industry, according to Taiwanese President Tsai Ing-wen. Meanwhile, Officials in Taiwan have stated that local businesses will continue to possess the most advanced chipmaking know-how.

Samsung began mass manufacturing of 3nm semiconductors in June. This happens as an attempt to catch up to TSMC in the contract chipmaking market. Additionally, the goal is to meet the growing demand for high-performance devices that use less power.

China considers Taiwan to be part of it. It threatens to attack the island regularly to maintain its nominal freedom. Relevantly, the recent military drills triggered concerns about the world’s reliance on Taiwan for semiconductors.