Taiwan Semiconductor Manufacturing Company (TSMC) has reiterated its 5nm chip production will take place at its manufacturing site at the South Taiwan Science Park (STSP), although expansion for the new process is still going through an environmental impact assessment.

As for 3nm chip production, TSMC will still give priority to production sites in Taiwan given the better manufacturing efficiency the company is able to achieve compared to other locations, the foundry indicated.

TSMC's production bases in northern, central and southern Taiwan are able to provide the company lower manufacturing costs and higher productivity, the foundry noted. Nevertheless, sufficient electricity and water will be crucial for TSMC deciding to locate its 3nm production lines in Taiwan, the foundry said.

TSMC disclosed previously it had started R&D of 5nm process technology, with risk production scheduled to kick off in the first quarter of 2019. TSMC has also assigned hundreds of engineers to commence 3nm development.

TSMC expects to move its 7nm process technology to volume production in 2018. An improved version of the 7nm process using extreme ultraviolet (EUV) will be ready for volume production a year later, the foundry said previously.