In the face of mounting challenges, Taiwan Semiconductor Manufacturing Co (TSM) is forging ahead with its cutting-edge 2nm technology development, both domestically and abroad. Despite the obstacles posed by geopolitical tensions, supply chain disruptions, and natural disasters, the company remains committed to commercializing its 2nm technology at its new Baoshan plant in Hsinchu by 2025. Industry insiders reveal that the price tag for Huguoshengshan 2nm wafers will exceed $30,000, more than double that of its 4nm and 5nm counterparts, underscoring the company’s market dominance and pricing power.
The demand for TSM’s advanced manufacturing capabilities remains strong, driven by the growing need for artificial intelligence and high-performance smartphones. However, the company faces pressure from industry-wide selloffs and supply chain constraints. The development of cutting-edge foundries requires substantial investments, with estimates suggesting that 3nm process R&D costs can range from $4 billion to $5 billion, while building a 3nm factory can cost upwards of $15 billion to $20 billion.
TSM is also expanding its presence in the US, with plans to produce 2nm chips at at least two fabrication plants currently under construction. The company has committed over $65 billion to its Arizona facility, which will cater to the needs of prominent clients such as Nvidia Corp, Advanced Micro Devices, and Apple Inc. Furthermore, TSM has strengthened its partnership with Amkor Technology, a leading chip packaging and testing service provider, to develop advanced packaging and test capabilities in Arizona, capitalizing on the growing demand for AI-enabled technologies.
The collaboration will focus on the development of CoWoS (Chip on Wafer on Substrate) and Integrated Fan-Out (InFO) technologies, which have been instrumental in boosting computing power for high-performance graphics processors and core chips used in Apple’s iPhone and MacBook products. TSM’s stock has surged over 107% in the last 12 months, offering investors a compelling opportunity to tap into the semiconductor sector through ETFs such as the EA Series Trust Strive US Semiconductor ETF and the Columbia Semiconductor and Technology ETF.
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