On Thursday, Taiwan Semiconductor Manufacturing Co TSM showcased its next advanced logic process technology, A14, at its North America Technology Symposium.

It plans to put its most advanced 1.4-nanometer chips into production in 2028.

A14, a significant advancement from the N2 process, aims to drive AI transformation forward by delivering faster computing and greater power efficiency.

Also Read: Intel Taps Taiwan Semiconductor For Advanced 2nm Process For AI-Powered Chips: Report

It will likely enhance smartphones by improving their on-board AI capabilities,

Compared with the N2 process, which is about to enter volume production later in 2025, A14 will offer up to 15% speed improvement at the same power or up to 30% power reduction at the same speed, along with a more than 20% increase in logic density.

The chipmaker also evolves its TSMC NanoFlex standard cell architecture to NanoFlex Pro.

Taiwan Semiconductor also debuted new logic, specialty, advanced packaging, and 3D chip stacking technologies, each contributing to broad technology platforms in High-Performance Computing (HPC), Smartphones, Automotive, and the Internet of Things (IoT).

The company also plans an intermediary A16 chip process for late 2026, according to a Bloomberg report.

Deputy Co-Chief Operating Officer Kevin Zhang told Bloomberg at an event Wednesday that it remains confident that overall demand for semiconductors will continue to rise and total industry revenue will “easily” exceed $1 trillion by the end of the decade.

Taiwan Semiconductor stock fell 22% year-to-date. The chipmaker’s Arizona facility incurred a loss of ~14.3 billion New Taiwan dollars ($441 million) in 2024, marking the most significant loss since its establishment.

The U.S. losses reflect the repercussions of Washington’s attempt to restructure global semiconductor supply chains through political intervention.

The Arizona factory’s dependence on importing key components and raw materials drives logistics costs and extends the supply cycle. Additionally, high labor costs in the U.S. further inflate per-unit labor expenses.

In March, Taiwan Semiconductor announced an additional $100 billion investment in U.S. chipmaking (on top of its $65 billion in April 2024).

Price Action: TSM stock traded higher by 3.69% to $163.62 at the last check on Thursday.

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