The giant TSMC already has a date to manufacture the first 1 nm chips in history

The economic results of Taiwan Semiconductor Manufacturing Company (TSMC) during 2024 have been outstanding, with a 34% increase in its revenue compared to last year, all marked by the AI boom and the need for chips.

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In December, the company achieved revenues of over 8.4 billion dollars, representing a remarkable increase of 57.8% compared to the same month the previous year.

This growth has been mainly driven by the increasing demand for semiconductors for artificial intelligence applications, supplying key products to tech giants like NVIDIA, AMD, and Broadcom.

More tariffs for TSMC and foreign chips?

However, Donald Trump’s recent arrival at the White House has generated uncertainty about the future of TSMC.

In his electoral campaign, Trump announced plans to impose tariffs on foreign semiconductor production and other essential products, with the intention of encouraging the return of manufacturing to the United States.

The explicit mention of Taiwan in their statements has raised concerns, given that TSMC is a dominant player in this sector, with a market share of approximately 60% in integrated circuits.

To counteract possible negative effects of this protectionist policy, TSMC has been strengthening its infrastructure in the United States. The company has been developing a strategy to expand its production capacity outside of Taiwan, thus seeking to secure its position in the U.S. market in the face of any potential conflict between China and Taiwan.

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In addition to all this, TSMC has announced plans to build an advanced semiconductor plant in Tainan, which will produce 1-nanometer chips with six production lines, starting large-scale operations in 2030. This could be a response to the demand in the sector and a proactive measure in light of changes in U.S. economic policy, although it may still be several years before full implementation.