Taiwanese officials are making it clear that the US will not get TSMC's most advanced chip tech. A deputy minister recently reiterated the island's strict N-2 policy, meaning American facilities will always be at least two manufacturing generations behind Taiwan's leading edge. For example, if Taiwan is producing 1.4-nanometer chips, the US would only get access to 1.6-nanometer processes.
This formal rule confirms a major hurdle for US plans to onshore cutting-edge semiconductor supply. TSMC is still investing heavily in Arizona, with plans for 3-nanometer production by 2027. However, by that time, Taiwan aims to be moving beyond 2-nanometer tech toward 1.6-nanometer nodes. The policy is designed to protect Taiwan's economic security and technological lead by keeping core research and development locally.
This situation could create a significant opening for Intel Foundry on its home turf. With TSMC legally bound to keep its latest nodes offshore, Intel might attract more customers for its own advanced projects like the 14A node. The US push for a resilient supply chain, driven by both government pressure and client demand, now faces the reality that true technological parity will require massive domestic R&D investment outside of TSMC.
This formal rule confirms a major hurdle for US plans to onshore cutting-edge semiconductor supply. TSMC is still investing heavily in Arizona, with plans for 3-nanometer production by 2027. However, by that time, Taiwan aims to be moving beyond 2-nanometer tech toward 1.6-nanometer nodes. The policy is designed to protect Taiwan's economic security and technological lead by keeping core research and development locally.
This situation could create a significant opening for Intel Foundry on its home turf. With TSMC legally bound to keep its latest nodes offshore, Intel might attract more customers for its own advanced projects like the 14A node. The US push for a resilient supply chain, driven by both government pressure and client demand, now faces the reality that true technological parity will require massive domestic R&D investment outside of TSMC.
