Taiwanese Company Unveils World’s Most Advanced Microchip

What Happened?

This week the Taiwan Semiconductor Manufacturing Company (TSMC) unveiled what it claims is the world’s most advanced microchip. TSMC also issued a statement saying mass production of the new microchip is slated to begin in the second half of 2025. 

The new microchip is only two nanometers in size, smaller than the current smallest microchip on the market which is three nanometers.

TSMC also promised the new chip will provide significant improvements in productivity and efficiency over the world’s current leading microchip.

Why it Matters

As Dominico Vicinanza of Science Alert pointed out, “microchips are the foundation of modern technology, found in nearly all electronic devices, from electric toothbrushes and smartphones to laptops and household appliances.” 

If the new microchip can deliver on TSMC’s promises, then devices utilizing the two-nanometer chip should be able to operate with increased efficiency and speed all while using less power.

TSMC was established in 1987. The company manufactures chips for other businesses. Taiwan accounts for 60% of the global "foundry" market (the outsourcing of semiconductor manufacturing) and the vast majority of that comes from TSMC alone. 

Such dominance of the global semiconductor market is something Taiwan uses not only to achieve economic growth but also national security.

Taiwan often ties its own national security to semiconductor dominance by claiming that any attack or invasion by China could destroy or disrupt a vital component of the global supply chain. 

China would likely try not to damage semiconductor facilities in a hypothetical invasion due to its economic value. It is equally likely in the fog of war such facilities would get damaged or destroyed anyway.

Remember, during war, some countries destroy bridges and other infrastructure to prevent an enemy from using or gaining control of them. It’s possible Taiwan could destroy semiconductor facilities in order to prevent them from being taken over by Chinese forces. 

Either way, conflict would be extremely risky for Taiwan’s semiconductor business and by extension the global economy. 

The benefits for consumers of the new microchip could be seen in smartphones, tablets, laptops, and other electronic devices. Not only could these devices manage tasks more efficiently and quickly, but they would also consume less power.

This would extend battery life for anyone using them. Better graphics and processing power could be placed at the fingertips of billions of users worldwide.

How it Affects You

With mass production of the new microchips scheduled for the second half of 2025, the products incorporating the new chips would likely hit the market in the U.S. shortly thereafter. 

Autonomous vehicles could see improved performance and data centers could consume less power with the new TSMC microchips. 

TSMC had also expressed interest in building five new production facilities in the United States. But some Taiwanese officials are concerned that making the chips outside Taiwan would undermine their national security.