A multitude of cutting-edge chips will leverage TSMC’s 2nm process next year, with the world’s biggest semiconductor manufacturer already having a head start by reportedly taking orders for its wafers from the month of April. For years, the company has relied on Chinese chipmaking equipment to complete its ambitious goals, but with the U.S. administration breathing down its neck, a new report states that TSMC has little choice but to phase out these tools in favor of an alternative.
The initial plan for TSMC was to replace existing Chinese chipmaking tools for its 3nm process, but there were too many complexities involved for the move to make sense
Full-scale production of 2nm wafers is expected to kick off later this year at TSMC’s Hsinchu plant, followed by the facility located in Kaohsiung. A third plant, which is currently under construction in Arizona, will be utilized to meet future production schedules. According to Nikkei Asia, TSMC’s decision to remove Chinese chipmaking tools is a direct response to the anticipated U.S. regulations like the proposed China EQUIP Act, which essentially prohibits chipmakers from receiving U.S. funding that continue to use equipment supplied by foreign entities that present a concern to national security.
In this case, the country would be China and its local manufacturers. TSMC has used Chinese-made tools in the past from companies like AMEC and Mattson Technology for its previous technologies, but as it eventually transitions to the 2nm process, it has begun phasing out this equipment for its Taiwan and U.S. operations. It is not confirmed whether these chipmaking tools are being replaced due to their technological inferiority, or if it is a decision to appease the U.S. administration. However, TSMC is also said to be reviewing all materials and chemicals originating from China to reduce dependency on the region.
It should be noted that TSMC initially planned to remove China’s chipmaking tools with its 3nm process, but at the time, there were too many complexities and risks involved for the outcome to be favorable. Most importantly, there was likely zero intervention of the U.S., which has made the move possible at this time. The company is estimated to have four plants that will be fully operational next year, with approximately 60,000 monthly wafer output on the 2nm process as it aims to sate the demand for a boatload of clients.
News Source: Nikkei Asia
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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