Taiwan Semiconductor Manufacturing Company (TSMC) has reportedly secured the Taiwanese government's approval to potentially establish 2-nanometer chip production facilities in the United States. This shift comes as TSMC is also beginning trial production of 2nm chips at its facilities in Taiwan, suggesting a significant expansion of the company’s global manufacturing footprint.
TSMC May Produce 2nm Chips in US Following Policy Shift
According to a report from Taiwanese publication UDN, the Taiwanese government has relaxed its policy requiring domestic production to be one or two generations ahead of overseas facilities. This decision gives TSMC more flexibility to decide whether to set up advanced production capabilities abroad, including the Arizona site where they are already building new plants with CHIPS Act subsidies. Taiwanese Minister of Economic Affairs, J.W. Kuo, commented on the potential high costs of such a move, estimating a $30 billion investment for equipment and infrastructure in the US.
Trial Production of 2nm Chips Begins in Taiwan
While considering options in the US, TSMC has commenced trial production of 2nm chips at its Kaohsiung facility, following the start of trial production at its Baoshan plant. Both facilities are targeting an initial production of 5,000 wafers per month. Demand for 2nm wafers is expected to be high, with Apple, Qualcomm, and MediaTek among TSMC’s first customers. The start of trial production also signals a move towards mass production later this year.
Expanding Manufacturing Capacity
With the Kaohsiung and Baoshan plants, TSMC's production capacity is estimated to reach 40,000 wafers per month, potentially increasing to 80,000 by 2026 to meet growing demand. To reduce costs for clients, TSMC is launching a "CyberShuttle" service that allows clients to test their chips on the same sample wafer.
Taiwan's Focus on R&D and Chip Design
Taiwanese officials have also emphasized that while production might expand overseas, TSMC's research and development will continue to remain in Taiwan. They acknowledge America's leadership in chip design and intellectual property, underscoring that Taiwan maintains its edge through its manufacturing capabilities.
