TSMC still cannot manufacture 2nm chips outside of Taiwan due to the country’s law

TSMC has been expanding its operations around the world with new factories, but its most advanced processes – such as 2nm lithography – are expected to remain in Taiwan. This is what the country’s law determines, as highlighted by JW Kuo, Taiwan’s Minister of Economic Affairs.

At a recent meeting of the Asian country’s Economic Committee, according to the Taipei Times, Kuo explained:

“As Taiwan has related regulations to protect its technologies, TSMC cannot produce 2nm chips abroad currently. While TSMC has plans to make 2nm chips abroad in the future, its core technology will remain in Taiwan.”

The Taiwanese laws cited by the minister restrict the manufacturing of chips by local manufacturers in their most advanced processes outside the country. Thus, TSMC may one day manufacture 2nm in the USA, for example, but only after its technology has a more advanced version to be restricted to Taiwan.

TSMC’s 2nm expected to take years to exit Taiwan

JW Kuo’s speech highlights the existence of the law in Taiwan that will guarantee that we will always see TSMC’s most advanced processes restricted to the country. However, it should not impact the company’s expansion roadmap, which already appears to have been planned around regulations.

At the moment, one of the Taiwanese semiconductor manufacturer’s main new facilities is in Arizona, United States. The company is taking advantage of subsidies and easy loans from Chips ACT to expand its production capacity in the country.

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The site is known as Fab 21 and is expected to begin volume production of chips in 4nm and 5nm (N4 and N5) next year, 2025. It is only Phase 2 of this facility, which is expected to begin operating in 2028, that will work with 3nm chips (N3) and start the first 2nm components in the USA.

By then, however, TSMC will already be producing more advanced chips in its homeland, ensuring compliance with Taiwanese regulations.

Source: Tom’s Hardware