Next year, many cutting-edge chips will use TSMC’s 2nm process technology. According to reports, the world’s largest semiconductor manufacturer has seized the opportunity toAprilIt started accepting orders for its wafers. For years, the company has relied on Chinese chipmaking equipment to achieve its ambitious goals, but with pressure from the U.S. government, a new report suggests that TSMC will have to phase out these equipment in favor of other alternatives.
TSMC's Hsinchu plant is expected to be fully operational with 2nm wafers later this year, followed by its Kaohsiung plant. A third plant currently under construction in Arizona will be used to accommodate future production plans. According to Nikkei Asia, TSMC’s decision to remove Chinese chip manufacturing equipment is a direct response to upcoming regulatory measures in the United States, such as the proposed China Equipment Manufacturing Act (EQUIP Act). The bill essentially bans chipmakers from accepting U.S. funding and continuing to use equipment provided by foreign entities that poses a threat to national security.
In this case, the country refers to China and its local manufacturers. TSMC has used Chinese manufacturing tools from companies such as AMEC and Mattson Technologies in the past to produce its previous technology, but it has begun phasing out such equipment in its Taiwan and U.S. operations as it eventually transitions to the 2-nanometer process. It is unclear whether the chipmaking tools were replaced due to technical inferiority or if the decision was made to appease the U.S. government. However, TSMC is also said to be reviewing all materials and chemicals sourced from China to reduce reliance on the region.
It is worth noting that TSMC originally planned to use its 3-nanometer process technology to replace China's chip manufacturing tools, but at that time because there were too many complexities and risks involved, the final result was not ideal. Most importantly, the United States most likely did not intervene to make this move possible. The company is expected to have four factories fully operational next year, with a monthly wafer output of about 60,000 wafers using the 2-nanometer process to meet the needs of a large number of customers.