TSMC Currently Prohibited from Producing 2nm Chips Overseas

Taiwan’s technology protection rules prohibit TSMC from producing 2-nanometer chips outside Taiwan, so the company must keep its most cutting-edge technology there, Guo Zhihui, an official with Taiwan’s economic ministry, said recently.

Guo Zhihui made the above remarks in response to concerns that TSMC may be forced to produce advanced 2-nanometer chips at its Arizona wafer fab ahead of schedule after former US President Trump is reelected as the next US president.

Guo Zhihui added: “Although TSMC plans to produce 2nm chips overseas in the future, its core technology will remain in Taiwan, China, China.

Taiwan, China restricts chipmakers from producing chips overseas at least one generation behind their local factories. TSMC told investors in July that its next-generation A-16 chip will enter mass production in the second half of 2026 and will increase production of 2-nanometer chips next year.

According to TSMC’s overseas manufacturing roadmap, the company plans to produce 2-nanometer or more advanced chips in the United States by the end of this decade. At that time, its second wafer fab in Arizona will adopt 3-nanometer and put 2-nanometer process technology into operation in 2028.

The chip manufacturer stated that the third wafer fab located in Arizona will use 2-nanometer or even more advanced process technology to produce chips.

TSMC’s first wafer fab in Arizona is expected to start producing 4-nanometer chips in December.