TSMC, a major player in the chip industry, has been putting a lot of money into the U. S. to build a strong supply chain. However, there's a catch: Taiwan's laws are holding back the production of the most advanced chips in America.

Taiwanese lawmakers and experts are worried. They think that if TSMC invests too much in the U. S. , it could weaken Taiwan's position in the chip market. They fear that technology might be transferred, which could be bad for Taiwan. The deputy science minister, Fa-cheng Lin, has made it clear that Taiwan has a policy called "N-2. " This means that the U. S. will always be two steps behind Taiwan in chip technology.

For example, if TSMC makes 1. 2nm or 1. 4nm chips in Taiwan, it can only export 1. 6nm chips. Most of TSMC's research and development happens in Taiwan, and they follow all the rules.

The U. S. wants TSMC to expand in America to protect the chip supply chain from political tensions. They also want to make sure that the supply of advanced chips isn't disrupted. The U. S. government has put pressure on TSMC, and many U. S. clients are interested in what TSMC is producing in Arizona. Because of this, TSMC plans to invest a huge $300 billion. But even with all this investment, the U. S. won't get the most advanced chip technology before or at the same time as Taiwan.

Right now, TSMC is working on expanding its Arizona facility to include 3nm production lines, which will be ready by 2027. But by then, Taiwan will be moving to 1. 6nm technology after successfully launching the 2nm process. TSMC plans to follow Taiwan's "N-2" policy, which means the U. S. needs to focus on developing and producing its own core technologies. This requires a lot of research, equipment, and talent.

Dan Nystedt, an analyst, points out that TSMC is not eager to move its high-end technology to the U. S. This could be a big opportunity for Intel. Since Intel builds and produces its technology at home, the supply chain dynamics might favor them. However, it's still too early to say for sure.

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

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