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TSMC starts production of 3nm chips in Taiwan. That’s why it’s a big deal for Apple and other smartphone makers

TSMC has announced that it has begun manufacturing 3nm chips at its facilities in Taiwan. Earlier this month, chipmaker giant and Apple CEO Tim Cook showed off its upcoming chip factory earlier this month in Arizona, which will also utilize the new manufacturing node.

According to Focus Taiwan, TSMC is hosting a party today to honor the start of mass production of 3nm process chips in Taiwan. The company’s “Fab 18” factory, located in Southern Taiwan Science Park in Tainan, will begin manufacturing the newest and most advanced chip to date.

Analysts have pointed out that a celebration like this is a bit strange, also considering the culture of Taiwan and TSMC. Still, he thinks the company hopes to address concerns about its recent U.S. investments. Those plans have more than tripled recently, from $12 billion to $40 billion for its Arizona facilities.

The idea is that the celebrations will allay any fears that TSMC will leave Taiwan and move permanently to the United States. Since when Joe Biden’s administration has joined TSMC to set up a production plan in the United States, investors in Taiwan as well as the Taiwanese authorities have been concerned that TSMC can do most of their crucial project in the US.

With the ceremony, TSMC hopes to signal its intention to continue using Taiwan as its primary hub where its engineers perform all critical research, development and manufacturing, despite its overseas investments.

TSMC’s start of production of 3nm chips is particularly important for Apple and a number of other smartphone manufacturers. Apple currently calls its A16 a 4nm chip, although TSMC really considers it an improved 5nm chip. The first 3nm chips to arrive in Apple products are expected to be Macs with M2 Pro and Max in 2023. The new manufacturing node will bring tremendous energy efficiency and much more performance in upcoming Macs with M2 Pro and M2 Max in 2023.

TSMC’s plants in Arizona will also produce 3nm chips (having started with 4nm), but the company’s plants in Taiwan are expected to produce the cutting-edge technology first. Mass production in 2nm is expected to start as early as 2025.

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