Taiwanese Minister Hints TSMC May Move Advanced 2nm Manufacturing to the US Post-2025

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According to Wu Cheng-wen, Minister of the Science and Technology Council of Taiwan, the Taiwan Semiconductor Manufacturing Company (TSMC) is poised to transition its cutting-edge 2-nanometer chip manufacturing technology to various nations post-2025. This new process aims to rival Intel’s 18A technology, which is scheduled for production in the same year. Wu highlighted that the Taiwanese government is amenable to sharing this advanced technology with allied countries once TSMC begins developing its successors to the 2-nanometer chips.

Strengthening the Semiconductor Landscape: U.S. Remains a Key Player

During a recent press conference, Wu addressed media inquiries regarding potential acceleration in the transfer of advanced chip manufacturing technologies to the United States under the upcoming administration. The Biden Administration, through the CHIPS and Science Act, has been actively courting TSMC along with other semiconductor manufacturers to establish state-of-the-art facilities across America. TSMC has secured $6.6 billion in funding from the U.S., aimed at initiating three new manufacturing facilities, with one focused on 2-nanometer chip production slated for later in the decade.

Wu stated that TSMC’s production of 2-nanometer chips in Taiwan is set to commence in 2025. Decisions regarding the establishment of advanced manufacturing capabilities abroad in allied nations will be evaluated by the government after TSMC begins mass production. His comments imply that if government-level negotiations prove beneficial, TSMC could increase its global footprint in 2-nanometer manufacturing.

TSMC 2NM Technology — Image Source: TSMC

When asked about concerns regarding the potential ‘hollowing out’ of Taiwan’s semiconductor sector, Wu expressed confidence that such a scenario is unlikely. He noted that TSMC’s research and development (R&D) capabilities remain firmly anchored in Taiwan. Although TSMC has been encouraged to expand its manufacturing reach to the U.S. and Japan, these global ventures have not yet resulted in any definitive commitments to establishing R&D centers overseas.

The semiconductor industry is vital not just to Taiwan’s economy but also to its national security. TSMC stands as the most valued company on Taiwan’s stock exchange and is a major revenue contributor to the region. Wu reaffirmed that the heart of advanced semiconductor research will continue to be situated in Taiwan while expressing a willingness to assist friendly nations in cultivating their local manufacturing capabilities.

Moreover, the minister recognized the U.S. as the leading force in semiconductor fabrication, despite TSMC’s role in producing the world’s most advanced chips. He pointed out that semiconductor fabrication encompasses a wide array of technologies, including design intellectual property and manufacturing materials, and in these crucial areas, the U.S. continues to hold a competitive edge.

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