Taiwan may be working to ensure its US factories can produce some of its most advanced chips, but its latest 2-nanometer chip cannot legally be produced in Arizona.
According to Taipei Times, Minister of Economic Affairs J.W. Kuo (郭智輝) told the country’s Economics Committee that TSMC could not be forced to produce its latest generation of chips at Arizona—regardless of the outcome of the US election—because the company was bound by Taiwanese law.
Taiwan’s regulations stipulate that chipmakers can only produce the latest version of their technology domestically. Any chips manufactured at facilities abroad must be at least one generation old.
“Since Taiwan has related regulations to protect its own technologies, TSMC cannot produce 2-nanometer chips overseas currently,” Kuo told the committee.
“Although TSMC plans to make 2-nanometer chips [abroad] in the future, its core technology will stay in Taiwan,” Kuo added.
As Taipei Times points out, TSMC’s Arizona fabs are currently preparing to manufacture 4-nanometer chips. The company doesn’t plan to produce 2 or 3-nanometer chips in Arizona till the end of the decade, when its second fab comes online in 2028. By that time, the company will likely be on its next-gen chips, making 2-nanometer a generation old and legally viable for overseas manufacture.
Taiwan Semiconductor Industry Association (TSIA) chairman and TSMC VP Cliff Hou (侯永清) offered assurances that the US election results would not change the relationship between the US and Taiwan.
“The bilateral relationship has not changed because of the political landscape changes in the US,” Hou said.
“There could be some alterations in details regarding this partnership. We will look at it when everything is certain,” Hou added.
Hou also emphasized the need for the Taiwanese government to work more closely with the country’s chipmakers to further innovation in an effort to remain competitive.
“We should accelerate research and development to ensure our standing as an indispensable member of the global semiconductor supply chain,” Hou said. “We are also working with the government to see whether we can attract foreign partners to set up design and materials centers in Taiwan.”