TSMC, the Taiwan-based manufacturer of the world's most advanced chips, will bring its newest, most advanced chip production to US soil. The company had already announced plans for a 5-nanometer chip plant in Arizona. (The most advanced chips in Apple and Android phones currently use 4-nanometer technology. In chips, smaller is better.) Now TSMC will also build a next-generation 3-nanometer plant at the same Arizona location. The company is spending $12 billion on the 5nm plant, which is expected to start production in 2024. The company's founder, Morris Chang, made the announcement about the 3nm plant, adding that "the cost of manufacturing chips in the US will be at least 55% higher than in Taiwan". However Apple and other major customers are increasingly looking to diversify their supply chains globally. Regional tensions between Taiwan and China present a risk for companies like Apple and Qualcomm when all of the most advanced chips are made exclusively in Taiwan.
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