Taiwanese govt clears TSMC to make 2nm chips abroad — country lowers its 'Silicon Shield'

TSMC is now permitted to build chips on its upcoming 2nm-class process technologies at its facilities outside of Taiwan, according to J.W. Kuo, Minister of Economic Affairs of Taiwan, who said at a government press conference, reports Taipei Times. Previously, TSMC was prohibited from making chips using its latest process technologies outside Taiwan, largely to preserve the country's 'Silicon Shield,' a strategy that aims to keep production of the most leading-edge process nodes in Taiwan to ensure allied nations will defend the country in the event of a Chinese attack. However, while TSMC can formally export its N2-series process to the U.S., its only currently planned 2nm-capable fab will only come online by the decade's end.

"Those were old-time rules. Times have changed," Kuo said at the conference, according to Taipei Times. "Private businesses should make their own business decisions based on their own technological progress. The basic principle is that businesses can make profits from their overseas investments. TSMC is building factories in the U.S. with the aim of serving its U.S. customers, as 60% of the world's chip-designing companies are based in the U.S."

TSMC previously faced restrictions preventing Taiwanese companies from using leading-edge technology in overseas facilities. These rules required overseas chip production to lag at least two generations behind domestic operations. However, Taiwan's government has updated its stance, allowing businesses to decide based on technological advancements and market opportunities.

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