TSMC Drops Chinese Chipmaking Tools for 2-nm Fabs

TSMC will no longer use Chinese-made equipment in its 2-nanometer chip production lines, according to reports from Digitimes and Nikkei Asia.

With so much riding on the transition, TSMC’s choice of equipment suppliers has already had a major impact on factors such as yield. (Photo: TSMC)

The change comes as U.S. lawmakers advance the Chip EQUIP Act, a proposal that would bar companies receiving American subsidies from buying tools from “foreign entities of concern,” including Chinese firms such as AMEC and Mattson Technology, Luke James reported for Tom’s Hardware.

Nikkei Asia reported that while Chinese equipment was used in TSMC’s earlier advanced fabs, the company has chosen to qualify only Japanese, American, and European tools as it ramps up 2-nm production in Hsinchu and Kaohsiung, with Arizona to follow.

This ensures its most advanced fabs remain insulated from potential U.S. restrictions at a time when federal incentives are a key factor in global expansion.

The upcoming 2-nm (N2) process marks a critical milestone for the world’s largest contract chipmaker. It will be the first TSMC production technology to feature gate-all-around (GAA) transistors—the chip industry’s first major structural shift since FinFETs—and is expected to enter production in the coming months.

According to TSMC, 2-nm technology will deliver “full-node improvements,” including a 10% to 15% boost in performance and a 25% to 30% reduction in power consumption.

With so much riding on the transition, TSMC’s choice of equipment suppliers has already had a major impact on factors such as yield.

Now, the company must balance safeguarding U.S. market access with reassuring customers like Apple and Nvidia that production will not be disrupted by geopolitics.