Now formally: TSMC is not allowed to manufacture chips with the latest technology in the USA

In the future, Taiwanese companies will need a approval of the Taiwanese Ministry of Economic Affairs for larger investments abroad. A revision of the law on industrial innovation is primarily aimed at the chip order TSMC.

The legislative revision itself has so far been held in general. It is particularly important The new article 22with which authorities can determine requirements for foreign investments. The Ministry of Economic Affairs, among other things, leads national security and economic development as a reason.

“N minus 1” rule

For the third legislative reading, Prime Minister TOH Jung-Tai confirmed that it is essentially about TSMC. The government wants to exercise a so-called “n minus 1” rule. Among other things, the Taiwanese media United Daily News (UDN) and Commercial Times (Ctee).

TSMC can officially produce chips with its most modern manufacturing technology only in Taiwan. In foreign semiconductor plants, a maximum of the prior production generation is allowed. The exact legal implementation is to be worked out in the coming months.

Already without law reality

However, there is hardly any effects because TSMC is already producing only with its latest manufacturing technology in Taiwan. This is currently the 3-nanometer process N3E; The successor N2 will follow until the end of the year. In the USA, on the other hand, TSMC produces chips in the optimized 5-NM process N4 or N4P. AMD and Nvidia use the US works for their processors or AI accelerators. Apple is supposed to have processors for older iPhones produced there.

TSMC is developing new manufacturing processes in its Taiwanese research centers. After completion, the risk and finally series production in domestic semiconductor works. Only when everything runs smoothly will the introduction to the new US semiconductor works. This approach should minimize the costs.

For the German joint venture European Semiconductor Manufacturing Company (ESMC), legislation is already irrelevant because chips with much older manufacturing technology are created there. At the start is 28 to 12 Nm because the need is high from car manufacturers. At the other locations in China and Japan, TSMC only produces with older technology.

According to speculation If the Taiwanian government formally introduces the new investment rules to contain opinion -making that the USA could steal TSMC’s manufacturing technology.