Taiwan Semiconductor Manufacturing Co. (TSMC) plans to start producing chips on the advanced 3 nanometer process by 2023, the Minister of Science and Technology Chen Liang-gee said.

TSMC Chairman Morris Chang gave assurance that the company will give priority to investing in Taiwan, contrary to previous reports that the world's biggest contract chip maker will build its 3nm production facility in the United States instead.

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Earlier reports revealed that TSMC plans to allocate $16.39 billion in the United States to establish the 3nm plant, as the company is concerned of Taiwan's unstable water and electric supply.

Chen, however, assured that the ministry will extend as much help as it could to provide assistance for the TSMC to build the 3nm plant in Taiwan. He also expressed confidence that the Taiwanese government could stabilize the water and power supply to ensure the plant's smooth operation. And with regard to land availability concerns, Chen said that the country has sufficient space to meet the company's investment needs.

However, TSMC's 3nm plan is still under consideration and will not be finalized until the first half of 2018, the company noted. The chip maker said it is eyeing to build the plan in Kaohsiung in Southern Taiwan.

Chen said in a conference on Tuesday that the 3nm process, a new cutting-edge development in the field of global semiconductor, would help boost Taiwan's high-tech development.

TSMC accounts for more than 50 percent of the global share market in the pure wafer business. It has been aggressive in upgrading its production technology to maintain its dominance in the chip making market.

TSMC is also eyeing on developing chips on the 7nm and 5nm processes, with hope to start mass production by 2018 and 2020, respectively. It started making 10nm wafers in the fourth quarter of 2016.