Being concerned that TSMC’s expansion into the United States could dilute Taiwan’s semiconductor leadership, Taiwanese authorities are mulling setting a new export rule that would only let the world’s number-one foundry export technologies that are two generations behind its leading-edge production node, reports CNA. If this happens, this could slow down TSMC’s expansion in the U.S., as it currently relies on aggressive building of advanced fabs there.
The core of this new export policy is the government’s N-2 rule, which permits offshore deployment only of process technologies that trail Taiwan’s leading-edge by two generations. Previously, Taiwanese authorities stuck to their N-1 rule, allowing TSMC to export all technologies that are at least one generation behind the leading-edge fabrication process. The new framework is much stricter; depending on how one counts generations, it means that TSMC may only be allowed to export nodes that are two or even four years behind its best technology.
