Taiwan has reportedly "forbidden" TSMC to manufacture 2nm chips in foreign lands, as the government believes that the nation needs to protect its "exclusive" technologies.
Well, it looks like Taiwan isn't quite happy with the progress TSMC is making in the US, especially after the remarks by President-elect Donald Trump, who claimed that Taiwan is stealing US semiconductor technology. The two nations, who held key relations during the Biden administration, are apparently witnessing a fall-out, as seen in remarks by Taiwan's Minister of Economic Affairs. He claims that TSMC's 2nm core technology will remain in Taiwan despite the ambitions of the foundry to take it abroad.
TSMC has benefited tremendously under Biden, participating in the world's largest semiconductor incentive, the "CHIPS" Act, which ultimately prompted the development of the Arizona facility, which is now slated for opening in December. TSMC is said to initially manufacture 4nm/5nm processes in the US facility, with plans to expand up to 2nm by the end of the decade. However, it looks like the Taiwan government isn't too well off with the "technology transfer" to the US.
With Donald Trump in office, the US might change its stance towards aiding foreign entities in setting up facilities in the nation, given that Trump has previously stated that countries like "Taiwan" should pay the US to facilitate domestic production. Trump might not make surprising decisions, but the nation will be cautious about the incentives provided by the CHIPS Act, which might drive off interest, depending upon the new administration's decisions.
In the longer term, TSMC-US relations look healthy and productive, given that both parties are determined to expand
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