The Taiwanese government has banned TSMC, preventing the export of its most advanced technologies abroad. This decision comes just days after former U.S. President Donald Trump won the presidential election, with his new term set to begin in 2025.
Taiwan’s Minister of Economic Affairs, JW Kuo, stated that the move aims to “protect Taiwan’s proprietary technologies.” The decision is grounded in local regulations that require companies to limit overseas production to components at least one generation behind what is made domestically.
While the export ban applies universally, the statement specifically mentioned concerns about the U.S. government. Minister Kuo expressed worries over the potential for TSMC to be pressured into producing 2-nanometer chips at its Arizona facility sooner than planned.
However, Kuo did not wholly rule out future overseas production by TSMC, clarifying that “Although TSMC intends to manufacture 2-nanometer chips abroad in the future, its core technology will remain in Taiwan.” This means that TSMC will only be permitted to manufacture 2-nanometer components in the U.S. once a more advanced technology is already in production in Taiwan.
Despite the new restrictions, TSMC is moving forward with its plans. The company aims to utilize its Arizona facility for advanced chip manufacturing by the end of the decade, with the plant expected to be operational by 2028. In the meantime, TSMC is set to begin production of 4-nanometer chips at a separate Arizona facility as early as next month, as the current ban only affects cutting-edge technologies.
In response to speculation about the impact of Trump’s re-election, Cliff Hou, president of the Taiwan Semiconductor Industry Association (TSIA), stated that the outcome of the U.S. election should not alter the commercial relationship between the U.S. and Taiwan.
Source: Taipei Times
