TSMC Moves to Drop Chinese Equipment Ahead of U.S. Chip Restrictions

Taiwan Semiconductor Manufacturing Co. (TSMC), the world's leading semiconductor manufacturer, is proactively reducing reliance on Chinese chipmaking equipment in its advanced production lines. The strategic shift aims to mitigate risks from impending U.S. export controls targeting technology that could enhance China's military capabilities.

The company is phasing out tools from Chinese suppliers like AMEC and Mattson Technology in its cutting-edge 2-nanometer production lines. This preemptive MOVE comes as Washington considers new restrictions on firms collaborating with Chinese entities, including potential bans on U.S. subsidy recipients using equipment from 'foreign entities of concern.'

TSMC's comprehensive review extends beyond machinery to encompass all materials and chemicals across its global operations. The semiconductor giant's early adaptation strategy preserves access to critical U.S. subsidies and maintains its position in international markets, particularly for AI-essential chips below 7nm.