Investing.com -- Taiwan Semiconductor Manufacturing Co (TWSE:2330, NYSE: TSMC) announced on Wednesday its new A14 manufacturing technology, set to arrive in 2028. The A14 technology is expected to produce processors that are 15% faster at the same power consumption as its N2 chips, which are due to enter production this year. Alternatively, the technology can be used to produce chips that use 30% less power at the same speed as the N2 chips.

TSMC, the world’s largest contract manufacturer, also announced its forthcoming "System on Wafer-X", which will be able to combine at least 16 large computing chips, memory chips, fast optical interconnections, and new technology to deliver thousands of watts of power to the chips. This development is a significant step forward from Nvidia (NASDAQ: NVDA )’s current flagship graphics processing units, which consist of two large chips stitched together. Nvidia’s "Rubin Ultra" GPUs, due out in 2027, will stitch four together.

TSMC plans to construct two factories near its chip plants in Arizona to carry out the work. The new technology is expected to boost performance needed for artificial intelligence applications, marking a shift in the battleground between TSMC and Intel (NASDAQ: INTC ) from simply making fast chips to integrating them. This complex task requires working closely with customers.

Customer service, pricing, and wafer allocation availability are likely to influence a company’s decision about which chip manufacturer to choose. "They’re both neck and neck. You’re not going to pick one over the other because they have the technological lead," said Dan Hutcheson, vice chair at analyst firm TechInsights. "You’re going to pick one over the other for different reasons."

TSMC also debuted new logic, specialty, advanced packaging, and 3D chip stacking technologies at the Company’s North America Technology Symposium. These technologies are expected to drive product innovations in High Performance Computing (HPC), Smartphone, Automotive, and Internet of Things (IoT).

The company’s A14 technology is designed to drive AI transformation forward by delivering faster computing and greater power efficiency. It is also expected to enhance smartphones by improving their on-board AI capabilities. The current A14 development is progressing smoothly with yield performance ahead of schedule.

TSMC Chairman and CEO Dr. C.C. Wei said, "Our customers constantly look to the future, and TSMC’s technology leadership and manufacturing excellence provides them with a dependable roadmap for their innovations." He added that TSMC’s technologies like A14 are part of a comprehensive suite of solutions that connect the physical and digital worlds to unleash customers’ innovation for advancing the AI future.

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