• Taiwan Semiconductor Manufacturing Company Ltd (NYSE: TSM) kicked off mass production of next-generation chips Thursday, ensuring the island's status as the linchpin of critical technology.

• The primary chipmaker for Apple Inc (NASDAQ: AAPL) began bulk production of advanced 3-nm chips at its Tainan campus in southern Taiwan, Bloomberg reports.

• TSMC geared up on the production of technology likely to control the following lineup of cutting-edge devices from iPhones to internet servers to supercomputers.

• Also Read: Apple Chief Deepens Collaboration With TSMC's US Plants

• TSMC Chairman Mark Liu expressed confidence in the longer-term outlook for chip demand and promised to build future generations of 2-nm chips in the Taiwanese cities of Hsinchu and Taichung.

• "The semiconductor industry will grow rapidly over the next decade, and Taiwan will surely play an even more critical role in the global economy," Liu said. Demand for the 3-nm chips is "very strong."

• Taiwan is home to more than 90% of the leading-edge chip manufacturing capacity.

• TSMC had shared plans to offer 4-nm chips at a new Arizona plant in 2024 and 3-nm chips at a second U.S. plant in 2026.

• TSMC also ramped up capacity in Japan and explored sites in countries like Germany.

• Samsung commercialized 3-nm semiconductors in June to catch up to TSMC in the contract chipmaking business and tap the growing demand for high-performance devices that consume less power.

• TSMC's growing dominance of high-end chipmaking coincides with U.S. sanctions on China's semiconductor industry.

• Price Action: TSM shares traded higher by 1.22% at $73.95 on the last check Thursday.

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