Japanese media: To avoid risks from new US legislation, TSMC stops using mainland China equipment in its 2nm process
According to reports by Nikkei Asia citing multiple informed sources, TSMC is stopping the use of mainland Chinese chip manufacturing equipment in its most advanced chip factories to avoid potential restrictions by the US that could disrupt production.
The report states that TSMC's most advanced 2nm process chips are about to enter mass production, with production sites including Hsinchu, Kaohsiung, and future facilities in Arizona, USA. However, the production lines will not use equipment manufactured in mainland China.
Informed sources said this move is to avoid the restrictions imposed by the "Chip Equipment Act" (Chip EQUIP Act) proposed by the US Senate. The bill, led by Democratic Senator Kelly, aims to prohibit recipients of federal funding or tax credits from purchasing equipment from "foreign entities of concern," which industry executives generally interpret as Chinese suppliers.
The report mentioned that Chinese-made equipment has been part of TSMC's production lines. In earlier advanced chip production, TSMC used equipment from Chinese suppliers such as Semiconductor Manufacturing International Corporation (SMIC) and etching machines from Mattson Technology, a Silicon Valley-based semiconductor equipment company acquired by Chinese investors in 2016. However, due to the uncertainty of geopolitical factors, TSMC has gradually phased out these devices starting from the latest 2nm node.
Additionally, informed sources revealed that TSMC is also investigating all chip manufacturing materials and chemicals, aiming to reduce reliance on mainland China's supply in its Taiwan-US operations. At the same time, it is closely cooperating with local suppliers in its mainland China operations to align with Chinese authorities' key policies. This strategy is aimed at strengthening supply chain resilience and increasing the use of locally sourced materials where possible.
Informed sources said that about one year ago, TSMC planned to replace mainland China equipment used in its 3nm process because the company intended to transfer this production to the US, hoping to avoid potential regulatory uncertainties. However, replacing qualified suppliers requires a lot of time and may affect yield and capacity. Therefore, the final decision was to start preparing for mass production of more advanced 2nm chips.
Harris, former senior advisor at the US Department of Commerce's Bureau of Industry and Security and a semiconductor expert, warned, "The US must take measures to prevent Chinese equipment manufacturers from entering and potentially destroying the global market. Some tools are approaching competitive levels, and this risk is more urgent than the US realizes."
TSMC responded, saying, "As always, TSMC's global procurement strategy focuses on strengthening risk management systems and maintaining close partnerships with suppliers, continuously developing diverse supply solutions, and diversifying the supplier base." The company declined to comment on specific equipment details used in particular production nodes.
Original: www.toutiao.com/article/1841420315059465/
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