TSMC may be making a significant change due to pressure from the U.S.

TSMC is reportedly taking out Chinese equipment from its factories that will manufacture chips using TSMC's 2nm process, due to concerns that the U.S. might prevent TSMC from producing advanced 2nm chips. Volume production using the 2nm process node is scheduled to begin later this year at a plant in Hsinchu, followed by a factory in Kaohsiung. Next year, TSMC may have four plants in operation that will produce 60,000 wafers each month using the 2nm process.

TSMC had initially intended to remove the Chinese chipmaking equipment from its 3nm chip factories. However, the company determined that doing so would create too many complications. TSMC has used equipment from Chinese companies like AMEC and Mattson Technology in the past. But it has stopped using these suppliers as it builds its 2nm facilities. Moreover, TSMC is evaluating the chemicals and materials it uses in chip manufacturing to remove additional items sourced from China.

TSMC is likely removing equipment and other items from China needed to produce chips to gain favor with the U.S. The proposed Chip Equipment Uniformity and Production (EQUIP) Act, a bipartisan bill introduced in 2024, seeks to amend the CHIPS and Science Act.

The amendment would prevent projects funded by the CHIPS and Science Act from procuring semiconductor manufacturing equipment from entities owned or controlled by the Chinese government, and from other concerning foreign countries. The bill has been introduced in both the House and Senate, but has not yet been voted on. If it passes, it would impact the factories TSMC is building in Arizona.

TSMC has not announced whether it is removing the equipment from China because it does not meet TSMC's standards, or to appease the U.S. Its clients include major tech firms like Apple, Qualcomm, MediaTek, Broadcom, Nvidia, and AMD.