Taiwan is considering a new export rule that would limit TSMC’s exports of advanced chip technologies to the US. The rule, which is part of the government’s N-2 policy, would require TSMC to export technologies only two generations behind its leading-edge production node. This could slow down TSMC’s expansion in the US and give Intel an advantage.
The new rule would be stricter than previous policies, which allowed exports of technologies one generation behind the leading-edge process. TSMC currently has several fabs capable of 3nm-class manufacturing processes domestically, but its US fab is only capable of making chips on older N4/N5 fabrication technologies.
If implemented, the export ban could prevent TSMC from exporting its advanced 1.2nm or 1.4nm-class fabrication process to the US. Instead, it would be limited to using its 1.6nm-class production abroad.
However, TSMC has emphasized that most of its research and development workforce remains in Taiwan, which ensures that future process development stays anchored domestically. The company’s R&D footprint aligns with government requirements, and any future US investments by TSMC will be examined under existing laws.
The move is seen as a way to maintain Taiwan’s semiconductor leadership, but it could have negative consequences for the country’s economy. Some experts believe that the export ban would stifle some of TSMC’s investment levels into leading-edge node fab construction.
China has been trying to acquire advanced chip technologies through unofficial channels, and the US has imposed sanctions on Chinese companies involved in chip production. The new rule could be seen as a way to limit China’s access to advanced technology.
Japan is also expected to build N2 fabs soon, which could further reduce TSMC’s advantage in the market. However, some experts believe that Taiwan will eventually assimilate into the US-China rivalry.
Source: https://www.tomshardware.com/tech-industry/semiconductors/taiwan-considers-tsmc-export-ban-that-would-prevent-manufacturing-its-newest-chip-nodes-in-u-s-limit-exports-to-two-generations-behind-leading-edge-nodes-could-slow-down-u-s-expansion