Taiwan Semiconductor Manufacturing Company (TSMC) has officially enlisted the US as an optional location to build a new manufacturing fab for production of 3nm chips, according to a Chinese-language Economic Daily News (EDN) report.

TSMC previously stated that it will give the priority to Taiwan as the production site for its advanced 3nm process and has been seeking assistance from the Ministry of Science and Technology (MOST) to acquire a land lot of 50-80 hectare to build the plant.

In response, the MOST has promised to allocate a lot of 50 hectare in Kaohsiung Science Park (KSP) in southern Taiwan to meet TSMC's demand.

However, considering that an environmental protection evaluation of the planned site in the KSP may not complete by 2022, in which TSMC plans to kick off volume production of 3nm chips, TSMC thus has begun to ponder an alternative site, said the paper.

Air pollution in southern Taiwan and power supply are two other major issues crucial to TSMC's future decision, added the paper.

Total investment for an advanced 3nm manufacturing fab could reach over NT$500 billion (US$16.39 billion), estimated the paper.