Apple Supplier TSMC Confirms Plan To Make Cutting-Edge Chips At Arizona Plant

Apple Inc. AAPL supplier Taiwan Semiconductor Manufacturing Company Limited TSM has confirmed weeklong rumors that it will manufacture its most advanced chips at its U.S. plant that is under construction.

What Happened: TSMC’s founder Morris Chang, said on Monday the company plans to build 3-nanometer chips at its proposed Arizona plant, although the plan has not been completely finalized, reported Reuters.

See Also: Warren Buffett Disclosing $4.1B Stake Leads To 8% Spike In Apple Supplier's Stock

Chang was talking at a press conference in Taipei after returning from the APEC summit in Thailand. Although he has retired from TSMC, he is considered an influential figure both in the company and the broader semiconductor industry.

Phase one of the Arizona site will focus on building 5-nanometer wafer fab and the second phase will work on 3-nanometer, he reportedly said.

Why It’s Important: TSMC’s 3-nanometer technology, aka N3, is a full node stride from its 5-nanometer technology, and it offers up to 70% logic density gain, up to 15% improved speed at the same power and up to 30% power reduction at the same speed, relative to the 5-nanometer technology.

The Arizona plant is part of the Biden administration’s efforts to bring most chipmaking onshore. The Taiwanese company, which is the world’s largest foundry, is reportedly planning a second chipmaking plant in Arizona.

Price Action: TSMC closed Friday’s session at $82.27, up 0.97%, according to Benzinga Pro data.

Read Next: How To Buy TSMC (TSM) Stock

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