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TSMC May Produce 2nm Chips in the U.S., Marking a Shift in Taiwan’s Industrial Policy

TSMC May Produce 2nm Chips in the U.S., Marking a Shift in Taiwan’s Industrial PolicyTSMC May Produce 2nm Chips in the U.S., Marking a Shift in Taiwan’s Industrial Policy

Taiwan Semiconductor Manufacturing Company (TSMC), a global leader in semiconductor production, might soon start producing 2-nanometer chips in the United States. This potential move marks a significant shift in Taiwan’s industrial policy and follows ongoing investments in TSMC’s Arizona facility. According to recent statements by the Taiwanese government, the final decision on expanding advanced production overseas now rests entirely with the companies themselves.

Rising Costs and TSMC’s Arizona Expansion

Reports from the Taiwanese newspaper UDN indicate that the Minister of Economy, J.W. Kuo, stated that building advanced facilities in the U.S. could cost up to $30 billion. These expenses, tied to acquiring equipment and constructing plants, may make TSMC cautious about overseas expansion. Kuo emphasized that the decision to produce advanced chips, including 2-nanometer technology, in the U.S. is entirely up to TSMC. This represents a shift from previous policies, which required Taiwanese companies to maintain a technological edge domestically.

The TSMC facility in Arizona, already operational for earlier technologies, is set to become a critical hub for advanced production. By the end of this decade, the Fab 3 plant could host 2-nanometer chip production. This expansion is seen as a vital step in strengthening TSMC’s global leadership and meeting the needs of the American market. Despite initial concerns, the Taiwanese government has assured that TSMC’s research and development operations will remain firmly rooted in Taiwan, preserving its role as a technological leader.

The shift in Taiwan’s policy reflects the need to balance technological advantages with market and geopolitical pressures. Wu Cheng-wen, Minister of the Council for Science and Technology, noted that advanced chip production in the U.S. would not undermine Taiwan’s dominant position in the industry. Taiwan’s expertise in research and development will remain a cornerstone of its leadership, while the U.S. benefits from its edge in chip design and intellectual property.

Solomon Thompson

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