TSMC Gains Freedom to Produce 2nm Chips Overseas
On January 13, the Ministry of Economic Affairs (MOEA) of Taiwan, China, announced that TSMC will no longer face restrictions on investing in next-generation 2nm chip production in the United States.
However, the Ministry noted that, given the significant investment of up to $30 billion, TSMC, the world's largest semiconductor foundry, will proceed with caution and avoid making hasty decisions. This decision follows Taiwan's previous measures to protect its technological edge in chip manufacturing, which had restricted local companies from producing chips using advanced technologies at overseas plants.
Previously, Taiwanese chip manufacturers were allowed to use less advanced technologies—specifically, those that were at least two generations behind the technology used in Taiwan.
The head of MOEA emphasized that the current business environment is different, with companies now able to make independent decisions based on profitability. He reiterated that the $30 billion investment in 2nm technology comes with high uncertainties, and TSMC will proceed very cautiously.
In addition, reports indicate that after TSMC's first wafer plant in Japan begins mass production by the end of 2024, the company's U.S. facility will also officially commence operations.
U.S. Secretary of Commerce Gina Raimondo recently stated that TSMC has already started producing advanced 4nm chips for U.S. clients at its Arizona facility.
Last year, TSMC agreed to increase its original investment by $25 billion to a total of $65 billion, with plans to build a third wafer plant in Arizona by 2030. In November 2024, the U.S. Department of Commerce finalized a $6.6 billion subsidy to support TSMC's U.S. operations in Phoenix, Arizona.
TSMC's second wafer plant in Arizona is set to begin producing 4nm chips in the first half of 2025, with plans to produce 2nm and 3nm chips by 2028. The company also committed to utilizing the most advanced A16 chip manufacturing technology at the Arizona facility.
