Samsung Electronics has become the first chipmaker in the world to mass-produce advanced 3-nanometer (nm) microchips, which are said to be smaller, as well as more powerful and efficient than currently used 5nm semiconductors.

The announcement is a key milestone in Samsung’s efforts to compete with Taiwan Semiconductor Manufacturing Company (TSMC), which dominates the market for contract chip production and is the manufacturer of Apple’s chips for its iPhones, iPads, MacBooks and Macs.

TSMC is set to begin volume production of 3nm chips in the second half of 2022, and the company entered the development stage of 2nm technology last year, according to the TSMC's 2021 annual report.

Samsung’s 3nm chips are expected to be used in “high-performance, low-power computing” applications before being put into gadgets such as mobile phones.

"Compared to the 5nm process, the first-generation 3nm process can reduce power consumption by up to 45 per cent...