TSMC Eliminates Chinese Chipmaking Equipment From 2nm Production Lines to Prevent U.S. Supply Chain Restrictions

Next year, a host of advanced semiconductor chips are expected to utilize Taiwan Semiconductor Manufacturing Company’s (TSMC) revolutionary 2nm process. The industry leader has already jumped ahead by commencing wafer orders as early as April. Historically, TSMC has depended on equipment sourced from China to attain its ambitious production targets. However, under growing pressure from U. S.authorities, it seems the company is compelled to phase out these tools in favor of alternative solutions.

Strategic Shift: Moving Away from Chinese Chipmaking Equipment

Initially, TSMC considered replacing Chinese-made chipmaking tools with systems for its 3nm process. Nonetheless, the complexities associated with this transition proved to be significant obstacles, making it less viable at the time. The full-scale production of 2nm wafers is on track to commence later this year, initiated at TSMC’s facility in Hsinchu, with further operations planned in Kaohsiung. Additionally, a new plant under construction in Arizona is set to support future production demands.

According to recent reports from Nikkei Asia, TSMC’s strategic elimination of Chinese manufacturing tools aligns with anticipated U. S.policies, such as the proposed China EQUIP Act. This act aims to limit U. S.funding for chipmakers that utilize equipment from foreign suppliers deemed potential risks to national security—specifically focusing on China.

TSMC has historically incorporated Chinese equipment from manufacturers like AMEC and Mattson Technology for previous fabrication processes. However, as the company moves forward with its innovative 2nm technology, it is actively phasing out these tools for operations in both Taiwan and the United States. It remains uncertain whether these decisions stem from concerns over technological inadequacies or are primarily aimed at appeasing U. S.governmental aspirations. Furthermore, TSMC is reportedly assessing all chemicals and materials sourced from China, aiming to lessen its reliance on the region.

It’s worth mentioning that TSMC’s plan to phase out Chinese equipment during its earlier 3nm endeavors faced too many risks and complexities that made such an undertaking impractical. The recent shift comes at a time when U. S.intervention appears to foster a more favorable environment for TSMC’s operations. As the company gears up for next year, it anticipates operating four fully active plants with a projected monthly wafer output of around 60, 000 units on the 2nm process, aiming to satisfy the soaring demands of its extensive clientele.

For further insights, refer to the original report on Nikkei Asia.

Source & Images