BRIEF: Taiwan lifts advanced chip manufacturing export restrictions for U.S.

TSMC’s (2330.TW; TSM.US) decision on whether to use its most advanced 2nm process at its new U.S. fabs is one for the company to make, Taiwan’s Economic Affairs minister J.W. Kuo said on Saturday, signaling the government will no longer restrict the export of advanced chip manufacturing technology to the U.S.

To maintain its leadership in chip manufacturing, Taiwan previously implemented an “N+1” or “N+2” principle, requiring its chipmakers to do their most advanced manufacturing locally and limit activity in Mainland China and the U.S. to lag behind by one or two generations. However, Kuo broke with that policy, noting that times have changed, and companies should make decisions based on profitability. He emphasized that investment in 2nm manufacturing, which can reach up to $30 billion, is fraught with uncertainty, and TSMC is expected to proceed cautiously.

TSMC plans to establish three wafer fabs in the U.S. state of Arizona. The first began mass production of 4nm chips earlier this year. The second, slated to produce both 3nm and 2nm chips, is expected to commence mass production in 2028, and the third is scheduled to begin 2nm production before 2030.

By Lee Shih Ta

To subscribe to Bamboo Works weekly free newsletter, click here