Taiwan Semiconductor Manufacturing Co. (TSMC) is set to begin manufacturing its advanced 2-nanometer (nm) chips in the United States by 2028, according to Wu Cheng-wen (吳誠文), the head of Taiwan’s National Science and Technology Council (NSTC). The announcement comes amid growing discussions about Taiwan’s role in the global semiconductor supply chain and the expansion of TSMC’s facilities in both Taiwan and the U.S.
Key Timeline for TSMC’s 2nm Production Expansion
TSMC’s advanced 2nm chip production is currently in trial runs at its facilities in Hsinchu, Taiwan. This new generation of semiconductor technology promises faster processing speeds, enhanced energy efficiency, and a significant leap over the current 3nm technology. The Taiwan-based company is expected to begin mass production of the 2nm chips in Taiwan by 2025, with plans to expand its production overseas by 2028.
Key Dates:
| Event | Date | Location |
|---|---|---|
| 2nm Trial Production Begins | 2023 | Hsinchu, Taiwan |
| Mass Production in Taiwan | 2025 | Hsinchu & Kaohsiung, Taiwan |
| U.S. Production Begins | 2028 (Expected) | Arizona, U.S. |
Concerns and Government Regulations
The timeline for TSMC’s U.S. expansion has sparked concerns among local lawmakers. Opposition Kuomintang (KMT) legislator Ko Ju-chun (葛如鈞) questioned the government’s stance on whether TSMC might move its 2nm chip production to the U.S. before 2028, which would violate the three-year rule. This rule mandates that TSMC can only export advanced technology abroad three years after the process is first mass-produced in Taiwan.
In response, Wu Cheng-wen reassured the public that the government would not approve any such move before mass production in Taiwan begins. He emphasized that TSMC has not disclosed a precise timeline for production in the U.S., and the company will adhere to the three-year rule.
TSMC’s Commitment to U.S. Expansion
TSMC’s planned Arizona plant will play a critical role in its global strategy. The facility is slated to produce 3nm and 2nm chips, with commercial production starting in 2028. TSMC’s Arizona-based operations are part of a larger effort to enhance its presence in the U.S. semiconductor market, aided by U.S. government subsidies under the CHIPS Act.
On November 15, 2024, TSMC entered a formal agreement with the U.S. Department of Commerce for up to $6.6 billion in funding to support the construction of its advanced fabs in Arizona. The company is also considering a third facility in Arizona for 2nm and even more advanced technology, with production expected to begin by 2030.
Technological Advancements: The A16 Process
The 2nm process is set to replace TSMC’s current 3nm technology, used in flagship products like Apple’s A17 chips. The 2nm process will bring major improvements in chip performance and power efficiency, thanks to new innovations like the A16 nanosheet-based technology. This cutting-edge process delivers better logic density, superior performance, and energy efficiency, providing a solid foundation for future generations of mobile, computing, and AI applications.
What’s Next for TSMC and the Semiconductor Industry?
As Taiwan’s largest semiconductor producer, TSMC’s expansion efforts will shape the future of the global chip industry. With its plans for cutting-edge technology in both Taiwan and the U.S., TSMC will play a key role in meeting the rising demand for more powerful and efficient semiconductor solutions. However, the balance between domestic and international production, and the implementation of regulatory measures, will remain a key topic for debate in the coming years.
FAQs
Q1: When will TSMC begin producing 2nm chips in the U.S.?
A1: TSMC is expected to begin producing 2nm chips in the U.S. by 2028, following the mass production of these chips in Taiwan starting in 2025.
Q2: What is the significance of the three-year rule for TSMC’s foreign investments?
A2: According to Taiwan’s regulations, TSMC can only export advanced technologies to foreign countries three years after the technology has been mass-produced in Taiwan. This rule ensures that Taiwan remains the primary hub for high-tech semiconductor production.
Q3: How does the A16 technology improve chip performance?
A3: The A16 technology enhances chip performance by utilizing a nanosheet-based process, allowing for better logic density, improved power efficiency, and higher processing speeds.
Q4: How much is TSMC investing in its U.S. operations?
A4: TSMC has committed over $65 billion in its U.S. operations, including the construction of multiple fabs in Arizona, with funding support from the U.S. government’s CHIPS Act.
Q5: How will TSMC’s expansion affect the global semiconductor market?
A5: TSMC’s expansion into the U.S. with its advanced 2nm production capabilities will strengthen its position in the global semiconductor market, providing cutting-edge chips for industries like mobile technology, computing, and artificial intelligence.
