TSMC won't produce 2 nm chips in U.S. next year: Minister

Taipei, March 4 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) will not produce its most advanced technologies in the United States in 2026, Economics Minister Kuo Jyh-huei (郭智輝) said Tuesday.

Kuo made the comments during an appearance at the Legislature, hours after the Taiwanese chipmaker announced that it will invest an additional US$100 billion over the next four years to expand its manufacturing operations in the U.S.

Asked by Taiwan People’s Party lawmaker Chang Chi-kai (張啓楷) if TSMC would allow its most advanced technologies, the yet-to-be-released 2 nanometer and 1.6 nm processes, go to the U.S. in the near term, Kuo flatly denied it.

TSMC recently opened its first U.S. factory, which produces 4 nm chips, while construction on its second U.S. factory will only begin this year, he said.

As for more advanced chips, “this is impossible,” Kuo said. “I guarantee it -- the 2 nm and 1.6 nm processes will not go to the U.S. next year.”

TSMC is currently expected to begin mass production of 2 nm chips in Taiwan in the second half of 2025, followed by 1.6 nm chips in 2026.

Taiwan government officials have previously said the company would launch the 2 nm process in the United States “more or less” in 2028.

Speaking to reporters before the hearing, Kuo pushed back on questions about whether TSMC’s U.S. investments would harm Taiwan’s advantage in semiconductor manufacturing, thus reducing its geopolitical importance.

“The entire world relies on chips manufactured in Taiwan,” he said. “TSMC’s chip production in the U.S. and Japan is primarily for customers in those countries.”

“The chips it makes in Taiwan -- in addition to going to the U.S. and Japan -- are also needed to meet the demand of many other customers," he said.

Moreover, TSMC’s current level of investment in the U.S. is “not (large) enough” to draw the company’s entire supply chain there, Kuo said.