Taiwan's red line for its electronic chips

While TSMC is increasing its international investments, the Taiwanese government is putting a stop to its expansion ambitions. The reason? Protect its valuable 2nm technology.

TSMC Fab 20 will be the main 2nm production fab

The Taiwanese government has set clear limits to the international expansion of TSMC, its industrial flagship.

TSMC, which currently produces 3-nanometer chips on an industrial scale, now finds itself in a delicate position.

While the company is increasing its international investments, with factory projects in the United States, Germany and Japan, it is prohibited from producing its future technology. 2 nm outside Taiwanese borders. This is the technology that should be used to engrave Apple chips from 2025 or 2026.

A political decision

JW Kuo, Taiwan's Minister of Economic Affairs, was very clear: Taiwanese law protects the most advanced technologies. This protection naturally extends to technology 2 nmconsidered strategic for the island.

This decision comes in a context where Western countries are trying to secure their supply of semiconductors, in particular through massive subsidies.

This protectionist strategy is not innocent. It allows Taiwan to maintain a key technological advantage while allowing TSMC to develop less advanced facilities overseas.

TSMC's technological roadmap remains ambitious. After 2 nm technology, the company is already planning the development of A14 technology (1.4 nm) for 2028. Ever finer engravings which require colossal investments.


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