The Taiwanese government reiterated that it will apply 'a step behind technology' regulations to the U.S. factory of TSMC, the world's largest semiconductor foundry.
According to Taiwanese media on the 13th, Minister Liu Ching-ching of the National Development Council (NDC) stated during a government inquiry in the Legislative Yuan (National Assembly) the day before that TSMC's $100 billion (approximately 145 trillion won) investment in the U.S. was part of this.
Minister Liu noted that the regulations for 'N-1', where Taiwanese corporations operate advanced processes (N) in Taiwan and one generation lower processes (N-1) in foreign factories, would also apply to TSMC's U.S. investment.
He said, 'The government will adhere strictly to the three principles that "the latest technologies do not cross over," "the most critical technologies will not cross over," and "national security is a priority."'
Premier Chen Chien-jen also stated, 'If national security is violated, it will not be approved,' noting that during multiple communications between the government and industry, the first mention of the 'N-1' related regulation was made.
Wu Cheng-yuan, chairperson of the National Science and Technology Council (NSTC), also stated that there is no possibility of TSMC becoming 'America's TSMC (ASMC).'
A Ministry of Economic Affairs official revealed that TSMC's cutting-edge 2 NANO (nanometer) semiconductors will complete trial production in Taiwan and enter mass production this year, while production of 2-nanometer products in the U.S. is planned for around 2028, which will be at least 48 months behind Taiwan. Additionally, it was added that Taiwan intends to promote the production of 1.4-nanometer and 1-nanometer products around 2028, which will still comply with the N-1 related regulations.
Meanwhile, Taiwanese experts have expressed concerns that TSMC's proposal for equity investments to major U.S. semiconductor companies related to a joint venture operating Intel's factory could have 'more drawbacks than benefits.'
The day before, Reuters reported that TSMC proposed a joint investment to Intel involving NVIDIA, AMD, and Broadcom. The proposal reportedly included that TSMC would operate Intel's institutional sector but would not exceed a 50% equity share.
Experts pointed out that TSMC's $100 billion investment in the U.S. is only an appetizer, while the joint venture is the main course and that through the joint venture, they could perfectly grasp important know-how regarding TSMC's yield management.
In addition, it was added that the U.S. side requested TSMC's assistance in serving as a stable supplier capable of providing a large number of chips based on Intel's 1.8-nanometer (18A) technology to U.S. defense contractors.