In all the time that I've been closely following the smartphone industry, I've seen so many aspects of the spec sheet slow down and stagnate in their development. However, if there's one smartphone component that has never stopped evolving, it is the System on a Chip (SoC), colloquially referred to as the processor.
SoCs keep pushing the ceiling higher and higher with how much power they can deliver, and with the advancements being made, the fabrication tech is getting better too. Even though we only just got to 3nm chips, we're already hearing word that TSMC has plans to complete a 2nm production plant in the great US of A, by 2027.
TSMC Has Plans for a Third Chip Production Plant in Arizona
One of the very first smartphones I remember falling in love with was the Sony Xperia S, which was launched in 2012. The phone came with the Qualcomm Snapdragon S3, though back then, I didn't care much about that. However, would you believe that the SoC was built on a 45nm process? In 2025, that sounds ridiculous, since we've been hearing a lot about 5nm and 3nm chips.
As I said earlier, chipsets never stop advancing, and even though it feels like we just got to 3nm chips, manufacturers are already getting ready to push the envelope farther. 2nm chips are coming soon, and TSMC doesn't plan to be left behind. According to Android Headlines, it already has plans for an American production facility for those chips.
The chip manufacturing facility will be located in Arizona and will be the company's third plant in that US state:
- First Fab (2024): 4nm chip production
- Second Fab (2025): 3nm chip production
- Third Fab (2027): 2nm chip production
TSMC is expected to start producing 2nm chips in 2027; however, it has mentioned that it will only hit volume production by the end of the decade, so that could be two years afterward, in 2029.
American Chip Production Could Be Vital With US Tariff Situation
How the US tariff situation is going to turn out at the very end of the day isn't quite certain, but it is probably smart to assume that a lot of your favorite products, particularly tech, will see a pretty unsavory price increase (since almost all major tech comes into the US from outside the country's shores).
Chip production is extremely specialized, and it is basically impossible for a random company to just jump into it at this point. Even China struggled for a bit after being cut off from companies majorly involved in smartphone chip production. However, with massive investments in facilities on US soil, it seems like TSMC might be able to make things a little better for smartphone OEMs selling in the US.
By producing chips in the US, especially cutting-edge 2nm SoCs, one major component of future smartphones could potentially be sourced from the US as opposed to depending on fabrication that takes place in other countries. The fewer parts are made abroad, the less the tariff hit will be on your next smartphone.
Nice to know about the samsung products.