The world's largest contract chipmaker Taiwan Semiconductor Manufacturing Company, or TSMC, has begun mass production of its most advanced chips at a factory in southern Taiwan.

A ceremony was held in Tainan on Thursday to mark the start of mass production of 3-nanometer chips. The company simultaneously announced plans to expand capacity.

TSMC has also been building a plant in the US state of Arizona. The company said earlier this month that it would later build another factory there to make chips using its 3-nanometer technology.

TSMC's growing investments abroad have raised concerns over outflows of technologies and the company's possible shift of focus from Taiwan amid tensions with China.

But at Thursday's ceremony, TSMC Chairman Mark Liu stressed the company's commitment to Taiwan, saying the event demonstrated that TSMC is "taking concrete action to develop advanced technology and expand capacity in Taiwan."

Liu also said the company is working to build factories for more-advanced 2-nanometer chips at two other locations in Taiwan.