Taiwan Set to Discuss 2nm Tech Transfer to U.S. After Trump’s Remarks

Only a few weeks after a Taiwanese minister declared the transfer of TSMC’s cutting-edge N2 (2nm-class) process technology to foreign factories illegal, another official suggested that once N2 begins mass production in late 2025, they might start discussions about sharing this technology with allied democracies, as per a report from Economic Daily noted by Dan Nystedt. Despite this, TSMC’s plans to commence production of 2nm-class chips in the United States are set for the end of this decade.

Cheng-Wen Wu from the National Science and Technology Council (NTSC) expressed that after the N2 process is up and running by the close of 2025, they will look into the possibility of extending this advanced node to other democratic allies. This statement followed a reminder from J.W. Kuo, Minister of Economic Affairs, about the restrictions on exporting top-tier tech from Taiwan. Consequently, the most advanced technology TSMC will be able to use in the U.S. during 2025 – 2026 is the N3 (3nm-class process technology).

TSMC’s roadmap for its Fab 21, supported by the CHIPS Act, outlines that phase 1 will start mass production using N4 and N5 nodes in early 2025. The second phase in 2028 will see the production of chips with N3 technology, and the third phase aims to manufacture 2nm-class chips by decade’s end. However, there’s growing concern that TSMC could be compelled to accelerate the transfer of its top-tier 2nm-class process technology to its U.S. facility.

During his campaign, Trump criticized the CHIPS and Science Act initiated by the Biden administration, arguing that import tariffs would more effectively motivate chipmakers to establish fabs in the U.S. than would grants, loans, and tax incentives. Implementing such tariffs could pressure TSMC into moving more of its advanced processes to its Arizona plant. Yet, given the scarcity of fabrication tools, it’s uncertain whether TSMC could expedite this setup.

TSMC’s most sophisticated manufacturing processes are likely to remain exclusive to its Taiwanese operations for the foreseeable future, according to analyst Dan Nystedt. The main reason is that these advanced technologies are developed and initially scaled up in Taiwan, close to their R&D teams which facilitates easier adjustments and scaling for mass production. Therefore, it’s improbable that TSMC’s most advanced nodes will see simultaneous mass production in both Taiwan and other locations in the near future.