According to a report by the "Global Economics Reporter Wang Huan" and cited in the "Nihon Keizai Shimbun" on December 10, Liu De-yin, CEO of Taiwan Semiconductor Manufacturing Company (TSMC), the world's leading semiconductor foundry, announced on December 7 that Japan plans to invest over $20 billion into next-generation semiconductors with a 3-nanometer line width. This move is expected to position TSMC ahead of its major competitors, including South Korea's Samsung Electronics.
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Liu made the announcement during a speech in Hsinchu, northern Taiwan, on the afternoon of December 7. Currently, the 10-nm process technology used in Apple’s new iPhone and other devices represents the most advanced production. The 7-nm chips are set to enter mass production in 2018, while 3-nm technology is expected to be commercially available by 2022. TSMC is the only company currently working on 3-nm projects, with a new facility under construction in Tainan.
Semiconductors are generally categorized into two types: memory chips for data storage and logic chips for computing tasks. TSMC specializes in logic chips, which are widely used in smartphones. The company anticipates a significant increase in demand for artificial intelligence (AI) and data center applications following the launch of 7-nm production in 2018.
In the semiconductor industry, reducing the circuit line width is crucial for lowering costs and enhancing performance. However, as the size decreases, manufacturing becomes more complex, and the cost of production equipment rises dramatically. For instance, the "extreme ultraviolet (EUV) lithography" machines developed by Dutch manufacturer ASML (ASML) can cost over 100 million euros each, highlighting the high investment required to stay at the cutting edge of semiconductor technology.
With global demand for advanced chips growing rapidly, TSMC's strategic investments in 3-nm technology not only strengthen its competitive edge but also signal a shift in the global semiconductor landscape, where innovation and precision are becoming increasingly vital.
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