2024
11/11
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Taiwanese government officials have confirmed that TSMC, a major Taiwanese semiconductor manufacturing company, will be prohibited from manufacturing next-generation 2nm process chips outside of Taiwan. The new regulations are part of Taiwan’s efforts to maintain its technological advantage and economic security, and could have a major impact on TSMC’s expansion plans overseas, including in the United States.
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Taiwan government’s intentions and regulatory background
According to a statement from Taiwan’s Ministry of Economic Affairs (MOEA), the 2nm process technology, which TSMC plans to begin mass production by 2025, is one of the most advanced semiconductor manufacturing technologies and has been designated as a national strategic technology. are. For this reason, regulations are in place that prohibit production outside of Taiwan. This policy is said to be a measure by the Taiwanese government to protect next-generation technology from foreign influence and strengthen Taiwan’s economic and technological superiority.
TSMC is currently constructing a manufacturing base for 5nm and 4nm processes in Arizona, USA, which is scheduled to start operating in 2024, but production of 2nm process technology will be limited to Taiwan. This measure will cause a reconsideration of the relationship between Taiwan and the United States, and may have an impact on the Biden administration‘s policy of increasing semiconductor self-sufficiency in the United States.
Impact on TSMC’s plans in the US market
TSMC has been expanding its manufacturing capacity in the United States, including at its Arizona factory, but there are concerns that the decision that 2nm technology cannot be manufactured overseas will make it difficult to advance further into the United States with cutting-edge technology. Meeting U.S. technology demand and strengthening the semiconductor supply chain is important to both TSMC and the U.S. government, and the inability to manufacture 2nm technology in the U.S. undermines the Biden administration’s goal of increasing semiconductor self-sufficiency. will be inserted.
Furthermore, the United States is promoting measures such as the CHIPS Act, which provides incentives to domestic and foreign companies with the aim of securing advanced technology manufacturing domestically, but Taiwan’s regulations could complicate TSMC’s participation in this. There is sex. This is due to geopolitical tensions and instability in the Taiwan Strait, and suggests that Taiwan is acting cautiously to protect its position as a leader in the semiconductor industry.
TSMC Senior Vice President Hou Yong-ching emphasized that the change in US administration will not have a significant impact on the long-standing partnership between Taiwan and the US. However, political uncertainty is increasing, including former President Trump’s re-election and threats to raise tariffs.
Xenospectrum’s Take
Taiwan’s 2nm chip manufacturing regulations are a symbolic example of the collision between technology and geopolitics. The United States is aiming to expand domestic semiconductor manufacturing and strengthen its supply chain, but the inability to extend TSMC’s technological advantages overseas creates uncertainty about this goal. Furthermore, the regulation is an attempt to maintain a balance between Taiwan’s technological independence and security amid increasing pressure on Taiwan from China. However, it is unknown how this decision will affect TSMC’s growth strategy and economic partnership with the United States in the future, and it will require careful handling.
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