TSMC starts 3nm chip production in Taiwan. Here’s why this is a big deal for Apple and other smartphone makers

TSMC has announced that they have started manufacturing 3nm chips in their facilities in Taiwan. Earlier this month, the chip manufacturing giant and Apple CEO Tim Cook introduced its upcoming chip plant earlier this month in Arizona, which will also use the new manufacturing node.

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

Analysts have commented that a celebration of this sort is a little odd, given Taiwan’s culture and that of TSMC as well. However, think the company is hoping it helps with concerns about its recent investments in the US. Those plans more than tripled recently from $12 billion to $40 billion for its Arizona facilities.

The idea is, the celebrations will allay all fears of TSMC leaving Taiwan and setting up base in the US permanently. Ever since Joe Biden’s administration roped in TSMC to set up a production plan in the US, investors in Taiwan as well as Taiwanese authorities have been worried that TSMC may do most of their crucial designing in the US.

With the ceremony, TSMC hopes to publicize its intention to keep using Taiwan as the major hub where its engineers do all the research, development and critical production, despite its overseas investments.

TSMC beginning to produce 3nm chips is particularly significant for Apple, and a number of other smartphone manufacturers. Apple currently calls its A16 a 4nm chip, although TSMC really considers it an enhanced 5nm chip. The first 3nm chips to arrive in Apple products are expected to be Macs with the M2 Pro and Max in 2023. The new manufacturing node will bring massive power efficiency and a whole lot of more performance in the upcoming Macs with the M2 Pro and M2 Max in 2023.

TSMC’s Arizona plants will eventually produce 3nm chips as well (after starting with 4nm), but the company’s Taiwan plants are expected to produce the leading-edge tech first. 2nm mass production is expected to start as soon as 2025.