Monday, November 11th 2024
TSMC Can't Legally Make 2 nm Chips in the US Yet, Latest Nodes Must Remain in Taiwan
Even with billions of US dollars being invested overseas, TSMC cannot legally manufacture its most advanced nodes outside of Taiwan. According to Taiwan's Minister of Economic Affairs J.W. Kuo, "Since Taiwan has regulations to protect its own technologies, TSMC cannot produce 2-nanometer chips overseas currently." He added, "Although TSMC plans to make 2-nanometer chips [abroad] in the future, its core technology will stay in Taiwan." This provides crucial insight into TSMC's strategic positioning, both in its US expansion plans and in navigating global geopolitical waters, especially with Taiwan being the major hub of silicon innovation. Taiwan's semiconductor industry follows strict regulations regarding overseas production capabilities, requiring companies to maintain their most advanced manufacturing processes within Taiwan.
The company's international expansion strategy includes significant developments in the United States. TSMC's Arizona facilities are central to these plans, with multiple fabs in different stages of development. The initial Arizona facility will begin producing 4 nm chips imminently, while a second facility, scheduled to open in 2028, will manufacture then mature 3 nm and 2 nm chips. A third planned facility aims to produce 2 nm or more sophisticated chips. Meanwhile, Taiwan-based facilities will produce more advanced chips at the same time, with volume production of A-16 chips planned for late 2026, following the rollout of 2 nm chip production in 2025. Furthermore, Taiwan-US semiconductor cooperation will continue regardless of political changes. Taiwan Semiconductor Industry Association (TSIA) Chairman and TSMC Senior Vice President Cliff Hou noted that historical evidence suggests US electoral outcomes have not significantly impacted this technological partnership, though some adjustments may occur.
This situation raises critical questions about the effectiveness of the CHIPS and Science Act's objectives. Despite TSMC being awarded substantial US government support—including $6.6 billion in direct grants and up to $5 billion in loans for its Phoenix facilities expansion—Taiwan's legal restrictions on exporting leading-edge technology create a significant policy contradiction. The company cannot legally manufacture its most advanced chips on US soil, which could prompt concerns among US policymakers who have committed billions of taxpayer dollars to establish cutting-edge semiconductor manufacturing capabilities domestically. This disconnect between Taiwan's policies and US technological ambitions might lead to broader discussions about the return on investment for American taxpayers. While TSMC's Arizona fabs will indeed bring advanced manufacturing capabilities to US soil, they won't represent the absolute cutting edge of semiconductor technology.
Source:
Taipei Times
The company's international expansion strategy includes significant developments in the United States. TSMC's Arizona facilities are central to these plans, with multiple fabs in different stages of development. The initial Arizona facility will begin producing 4 nm chips imminently, while a second facility, scheduled to open in 2028, will manufacture then mature 3 nm and 2 nm chips. A third planned facility aims to produce 2 nm or more sophisticated chips. Meanwhile, Taiwan-based facilities will produce more advanced chips at the same time, with volume production of A-16 chips planned for late 2026, following the rollout of 2 nm chip production in 2025. Furthermore, Taiwan-US semiconductor cooperation will continue regardless of political changes. Taiwan Semiconductor Industry Association (TSIA) Chairman and TSMC Senior Vice President Cliff Hou noted that historical evidence suggests US electoral outcomes have not significantly impacted this technological partnership, though some adjustments may occur.
44 Comments on TSMC Can't Legally Make 2 nm Chips in the US Yet, Latest Nodes Must Remain in Taiwan
A Monopole market is not good for anyone - expect the one owning the monopoly.
Here is my journey since 1997
Even if I using my third AMD in row, the previous 4 were intel, and then 4 AMD, and one intel
- Intel Pentium 166MMX
- AMD Athlon 1000Mhz (Thunderbird)
- AMD Athlon XP 2500+
- AMD Athlon 64 3200+
- AMD Athlon X2 3800+
- Intel Core 2 Duo E6300 actual pic of that CPU here. :)
- Intel Core i7 920
- Intel Core i7 950
- Intel Core i7-3820
- AMD Ryzen 7 2700
- AMD Ryzen 9 3950X actual pic of that CPU here. :)
- AMD Ryzen 9 9950X
- __________________________ ->so maybe one more AMD before I go back to Intel :D
Personally I buy what is better at the moment, and I am pretty sure - the most of us just like me.AMD just capitulated in the GPU department.You are a genius, you understand a lot... :rolleyes::rolleyes::rolleyes::rolleyes:
Mubadala (United Arab Emirates) - 85.09%
Fidelity Investments (United States of America) - 8.74%
Matrix Capital Management (United States of America) - 3.07%
Went by me the first read. It isn't Saudi Arabia but UAE that owns controlling interest with GlobalFoundries. The correct term to use is "Emiratis" rather than "Saudis" for that.
TSMC is simple - US is a critical ally of Taiwan and China is an enemy. Pretty sure it did not need much convincing or wringing hands for US to make Taiwan put restrictions in place.
Taiwan's primary adversary for all their military bluster prefers to do things differently and while military intervention is not impossible it's more likely they will continue to play the long game and either
1) Taiwan's primary adversary will catchup technologically and supplant Taiwan by flooding the market with cheaper parts (by any means necessary)
or
2) Taiwan's primary adversary will turn Taiwan from within to induce reunification and thusly at that time capture world markets in high end chip production including in offshore production in the vary countries that were concerned enough about disruption to induce offshore production.
That's just my take on it without getting over the top political.
And this factory, in addition to having all the necessary steps before and after the lithography process on American soil, has to be independent: it cannot manufacture chips for itself, like Intel. Many other companies do not want to hire Intel as a chip manufacturer because Intel would manufacture and have access to the chip designs of its direct competitors well in advance, even if they are protected by patents. If, for example, Nvidia were to hire Intel to manufacture GPUs for it, Nvidia would show many of its industrial secrets to Intel, which is its competitor. And the same would happen to many other companies, since Intel manufactures several types of chips and, therefore, is a competitor of many other companies.
The entire US government (executive, legislative and judicial branches of the US) would have to come together and take drastic measures to build this mega chip factory on American soil. They could, for example, contact Bill Gates and other major investors so that they would buy GlobalFoundries and transform it into a 100% American company. And then, the US government would have to hand over around US$100 billion so that this giant factory could be built in the US.
Until the US government finds a way to have this giant chip factory built on US soil, the US will suffer drastically if country X invades, occupies and takes over the factories of country Y.
That's the main idea. Everyone can draw their own conclusions.
First machine was a Pentium MMX saved by switching in an AMD K6-2/300 and some 100GB storage. Overclocking was a very big deal and gaming was good.
Built my first new system with a Pentium 4 Prescott and went all in. USB, sata I and DVD±R. Screwed up going with a Radeon 9200 but a AH3450 saved it.
First multi-core 64-bit system got me through CAD drafting, SNS and machinist duty. Just didn't want the Intel headache but wound up with an IGP headache instead.
Switched up to the FX-8370 and today that thing is my faithful rack that can do it all. It needs purpose but deserves a better home than I can provide.
My Ryzen box was a proper choice at the $200 mark between a 1st gen Ripper, 2nd gen 8-core and 3rd gen 6-core. It still kicks ass and has a bright future.
My Athlon box was a free dono born of someone else's frustration and I gave it the best chance with ~20TB storage.
I sort of notice this weird switch pattern where I limp along barely server moding or go ALL in balls to the wall workstation/gaming.
Obsoletion makes the better server. I've had a taste of most cool chips by avoiding Intel so my next CPU will probably be nVidia.
wccftech.com/after-tsmc-samsung-barred-from-supplying-china-companies-with-7nm-and-below-chip-shipments/
China is slowly but surely catching up themselves thanks to reverse-engineering old ASML fab equipment they snuck over, so the US may as well try to stay ahead by bringing in more allies and leveraging their near-stranglehold on EUV licensing to provide additional supplier sources for both high-end fabs and high-end fab equipment, as any war, involving trade or weapons, would send the fragile semiconductor market skyrocketing.
Samsung is at the cutting edge and does have 3nm and 2nm processes that at least exist even if they have the reported/rumored yield problems.
Globalfoundries is several generations behind and they do not seem to be capable of catching up. Or even trying to.