The news came during a conference in Santa Clara, California, where TSMC's co-Chief Operating Officer, Y.J. Mii, detailed the new features of the A16 technology.

This technology is expected to revolutionise power delivery to computing chips by using the backside of the chip. This will significantly enhance the performance of artificial intelligence chips, a domain where TSMC is vying with its American counterpart, Chipzilla.

TSMC, recognised as the world's premier contract manufacturer of chips, is known for producing the fastest chips on the market and supplying giants such as Nvidia. Meanwhile, Intel has thrown down the gauntlet, asserting that it will surpass TSMC with its "14A" technology, also expected to debut in 2026

The competition is heating up as both companies vie for supremacy in the AI chip technology sector, with TSMC's A16 and Intel's 14A set to be pivotal in determining the future landscape of high-speed computing.