TSMC Restricted from Manufacturing 2nm Chips Outside Taiwan

Taiwan has reportedly barred TSMC from producing 2nm chips overseas, raising concerns about the future of TSMC's US expansion plans.

Taiwan has reportedly prohibited TSMC from manufacturing its advanced 2nm chips outside the country, aiming to protect its "exclusive" semiconductor technologies. This decision raises questions about the future of TSMC's ambitions in the United States.

TSMC Restricted from Manufacturing 2nm Chips Outside Taiwan

The move appears to reflect growing tension between Taiwan and the US following remarks by President-elect Donald Trump, who accused Taiwan of stealing US semiconductor technology. This marks a potential shift in the relationship between the two nations, which had strengthened under the Biden administration.

“Since Taiwan has related regulations to protect its own technologies, TSMC cannot produce 2-nanometer chips overseas currently. Although TSMC plans to make 2-nanometer chips [abroad] in the future, its core technology will stay in Taiwan.” - via Taipei Times

TSMC has significantly benefited from US policies under the Biden administration, particularly the CHIPS Act, which incentivized the development of its Arizona facility, slated to open in December. Initially, the facility will produce 4nm/5nm chips, with plans to expand to 2nm by the end of the decade. However, the Taiwanese government seems concerned about the potential transfer of its core technology to the US.

With Donald Trump's return to office, the US stance on supporting foreign semiconductor production within its borders might change. TSMC's long-term relationship with the US appears promising, but Taiwan's determination to safeguard its leading-edge technologies adds complexity to the situation.

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