Taiwan Semiconductor Manufacturing Company (TSMC) is on track to start risk production of 5nm chips in the first half of 2019, said company co-CEO Mark Liu at its annual supply chain management forum on February 23.

TSMC's 7nm process will be ready for risk production later in the first quarter of 2017, with volume production scheduled for 2018, Liu indicated.

TSMC will start using extreme ultraviolet (EUV) for an improved version of its 7nm process technology, and fully implement the lithography to make 5nm chips, Liu also noted.

As for TSMC's 10nm technology focusing mainly on mobile devices, the foundry is gearing up for commercial shipments of chips built using the process later in the first quarter, Liu said. Shipments will expand rapidly in the second half of 2017.

TSMC is looking to increase its R&D spending for 2017 by 15%, Liu disclosed. The foundry's capex for the year will top US$10 billion, up from the US$9.5 billion allocated for 2016, according to Liu.