Taiwan's Minister of Economic Affairs, Mr. Kuo Chih-hui, recently said, “Due to Taiwan's regulations to protect its technology, TSMC is currently unable to produce 2nm chips overseas. Although TSMC plans to produce 2nm chips in the future (in the U.S.), its core technology will remain in Taiwan.”
This also means that while TSMC can build state-of-the-art factories in the U.S., Europe and Japan, it cannot transfer its cutting-edge manufacturing technology to overseas production facilities. Overseas plants will only be able to produce chips using the previous generation of manufacturing processes.
Some commentators have suggested that, although not directly stated, these regulations are intended to ensure that Taiwan, China, and TSMC in particular, remain key business centers for the world's leading chip designers.
TSMC will begin high-volume production of 4-nanometer and 5-nanometer-class chips at Fab 21 in Arizona in 2025. TSMC's first 3-nanometer (and possibly 2-nanometer-capable fab - Fab 21 Phase 2) is scheduled to come online in 2028.
In response to Trump's campaign talk of possible US tariffs, Taiwan Semiconductor Industry Association chairman and TSMC senior vice president Hou Yung-ching pointed out that the Taiwan Semiconductor Industry Association has not yet received official notification. However, he emphasized that China and Taiwan should increase investment in research and development and strengthen supply chain management capabilities to ensure leadership in the global semiconductor market.
Hau said Taiwan must improve its expertise in semiconductor equipment and materials, areas currently dominated by foreign companies. At the same time, Taiwan should also attract foreign partners to set up design and materials centers in Taiwan, China, as a way to strengthen the semiconductor ecosystem, which is another way to boost the importance of Taiwan, China, in the global microelectronics supply chain.
