The newest generation of computer chips, called 2-nanometer (2nm) chips, made by the top manufacturer TSMC, are getting more powerful but also much more expensive. Each silicon wafer used to make these chips could cost around $30,000. In the future, even more advanced chips, called “Angstrom-era” chips, may have wafer prices as high as $45,000.
Creating these advanced chips requires a huge investment. Designing and preparing a 2nm chip for production is estimated to cost about $725 million. Because of these high costs, only a few major tech companies can afford to use these chips. Big names like Apple, AMD, Nvidia, Qualcomm, and Google are leading the race to use these powerful chips in their new products.
TSMC is working hard to increase its production. By the end of this year, it could make around 50,000 2nm wafers every month. This is mainly because of growing demand in areas like artificial intelligence (AI) and mobile devices, where these chips offer better performance and efficiency.
TSMC’s new factory in Arizona is also becoming very important. It will produce chips for big U.S. companies such as Apple, AMD, Qualcomm, and Broadcom. Nvidia is also expected to order chips from this plant. Apple continues to be one of TSMC’s biggest customers. Even though these chips are expensive, demand remains high as 2nm production starts.
In support of U.S. efforts to bring more chip manufacturing back home, TSMC expects its Arizona plant to produce about 30% of all chips smaller than 2nm in the future. The Arizona factory started making 4nm chips at the end of 2024 and plans to expand production to include even more advanced 3nm, 2nm, and Angstrom-era chips over the next several years.
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