TSMC Cuts Chinese Equipment from 2nm Plants Under U.S. Scrutiny

TSMC, the world’s top contract chipmaker, appears to be bowing to U.S. pressure as it prepares its 2nm process fabs.

The company is reportedly stripping Chinese-made equipment from its most advanced facilities, a move seen as an effort to secure favor with Washington and avoid potential production roadblocks.

Mass production of TSMC’s 2nm chips will begin later this year at its Hsinchu plant, with another fab in Kaohsiung following soon after. By next year, four plants could be pushing out as many as 60,000 wafers per month using the new node. While TSMC initially considered removing Chinese equipment from its 3nm lines, it backed away due to the operational complexity, choosing instead to implement the change with 2nm production.

Chinese suppliers such as AMEC and Mattson Technology, once part of TSMC’s supply chain, have now been dropped from the company’s most advanced fabs. Beyond hardware, TSMC is also reviewing chemicals and materials in order to reduce reliance on China. Whether this pivot is motivated by technical standards or by politics remains unclear, but timing suggests the latter.

The shift comes as the proposed Chip EQUIP Act makes its way through Congress. The bill seeks to ban recipients of CHIPS and Science Act funding from buying semiconductor equipment from Chinese state-linked firms, or from other countries deemed security risks. If passed, it could directly affect TSMC’s Arizona projects, making the company’s move look like a preemptive adjustment.

For its part, TSMC hasn’t publicly confirmed that U.S. pressure is behind the decision. However, with major clients like Apple, Qualcomm, Nvidia, AMD, and Broadcom relying on its cutting-edge chips, the company is unlikely to gamble with regulatory risks. Instead, it seems set on reassuring partners and governments alike that its future supply chain is politically safe.