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STORY: TSMC looks set to make some of its most advanced chips in Arizona.

The Taiwan giant is building a $12 billion factory in the U.S. state.

Reuters has previously reported that the firm was unsure whether the plant would make advanced three-nanometer semiconductors.

Speaking Monday (November 21), founder Morris Chang said it almost certainly would.

“Although this has not completely been finalised, let’s say it has almost been finalised, at the same plant in Arizona during phase two. Phase one is five-nanometre chips, phase two is three-nanometre chips."

TSMC is the world’s largest contract chipmaker, and a major supplier to firms like Apple.

The strong position of it and other local rivals has caused concern that the world is too reliant on the island’s output.

Chang says some countries have chip envy:

“Because they are such an important product, and seemingly only recently a lot of people suddenly woke up and realised this. So, there are a lot of jealous people, jealous of Taiwan's excellent chip manufacturing. There are a lot of jealous people.”

Chang didn’t say who exactly was jealous.

Both the U.S. and Europe are putting up billions in incentives to encourage chipmakers to set up closer to home.

Taiwan’s big firms are among those being courted.