U. S. Faces Hurdles in Getting Top-Tier Chips Despite TSMC's Big Investments

TSMC's Investment in the U. S.

• TSMC is heavily investing in the U. S. to strengthen the chip supply chain.
• However, Taiwan's laws restrict the production of the most advanced chips in America.

Taiwan's Concerns

• Taiwanese lawmakers and experts worry about:
• Weakening Taiwan's position in the chip market.
• Potential technology transfer to the U. S.
• Deputy Science Minister Fa-cheng Lin emphasizes Taiwan's "N-2" policy:
• The U. S. will always be two steps behind Taiwan in chip technology.
• Example: If TSMC produces 1. 2nm or 1. 4nm chips in Taiwan, it can only export 1. 6nm chips.

U. S. Motivations

• The U. S. wants TSMC to expand to:
• Protect the chip supply chain from political tensions.
• Ensure a steady supply of advanced chips.
• The U. S. government has pressured TSMC, with many U. S. clients interested in TSMC's Arizona production.
• TSMC plans to invest $300 billion in the U. S., but the most advanced technology will remain in Taiwan.

Current and Future Plans

• TSMC is expanding its Arizona facility to include 3nm production lines by 2027.
• By then, Taiwan will be moving to 1. 6nm technology after launching the 2nm process.
• TSMC will follow Taiwan's "N-2" policy, requiring the U. S. to develop its own core technologies.

Opportunities for Intel

• Analyst Dan Nystedt notes that TSMC is reluctant to move high-end technology to the U. S.
• This could be an opportunity for Intel, as they build and produce technology at home.
• However, it's still too early to determine the outcome.