TSMC to launch 2nm process in U.S. in 'more or less' 2028: NSTC head

Taipei, Nov. 29 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) will begin manufacturing its advanced 2 nanometer process in the United States in around 2028, according to Wu Cheng-wen (吳誠文), head of the National Science and Technology Council (NSTC).

When questioned by opposition Kuomintang (KMT) Ko Ju-chun (葛如鈞) at the Legislative Yuan Thursday on whether TSMC will launch the 2nm process in the U.S. three years after it starts mass production in Taiwan in 2025, Wu said the timing is "more or less" in 2028.

The three-year gap is significant because, according to local media, the NSTC and the Ministry of Economic Affairs have agreed that TSMC be only allowed to invest in an advanced technology in a foreign country three years after mass production of the same process has begun in Taiwan.

Given that consensus, Ko raised concerns that TSMC might launch its 2nm process in the U.S. ahead of 2028.

In response, Wu said TSMC will not discuss the timeline for 2nm process production in the U.S. until the 2nm commercial production actually begins in Taiwan.

The government will also not discuss with TSMC its 2nm production plans in one of Taiwan's democratic allies until mass production begins in Taiwan, Wu said, referring to the U.S.

At present, the 2nm process is in trial production at a TSMC fab in Hsinchu County.

On Friday, United Daily News reported that TSMC filed a document with the U.S. Department of Commerce saying it will start to roll out chips made using the 2nm process in the U.S. in 2028 at the earliest.

The 2nm process is more sophisticated than the 3nm process, TSMC's most advanced technology currently in mass production in Tainan.

TSMC is currently building up its 2nm production capacity in Taiwan in Hsinchu in northern Taiwan and Kaohsiung in the south.

It has a 2nm wafer plant in Baoshan in Hsinchu County, where a trial run has begun. Mass production at that facility is expected to begin in 2025. A second plant is under construction in Baoshan, with commercial production set for 2026.

In Kaohsiung, the first 2nm plant is scheduled to start mass production in 2026, and a second one is under construction.

TSMC is currently building two advanced fabs in Arizona. The first is scheduled to start mass production using its 4 nm process in early 2025, while the second is slated to mass produce chips using the 3nm and 2nm processes in 2028.

On April 8, when TSMC signed a preliminary non-binding agreement for subsidies of up to US$6.6 billion, the company announced a plan to build a third fab in Arizona using the 2nm process or more advanced technology with production slated to start by the end of 2030, boosting its total investment in Arizona to over US$65 billion.

On Nov. 15, the U.S. Department of Commerce announced it had signed a final agreement with TSMC for the US$6.6 billion direct funding under the CHIPS Incentives Program's Funding Opportunity for commercial fabrication facilities.

Under that deal, TSMC pledged to bring its state-of-the-art chip-making process -- A16 technology -- to the United States.

The A16 technology, a next-generation nanosheet-based technology featuring Super Power Rail, is "an innovative, best-in-class backside power delivery solution" that "improves logic density and performance by dedicating front-side routing resource to signals," according to the TSMC website.

The A16 technology represents a new generation technology, however, and would also have to follow the three-year rule before it could be launched in the U.S.