Taiwan considers TSMC export ban that would prevent manufacturing its newest chip nodes in U.S. — limit exports to two generations behind leading-edge nodes, could slow down U.S. expansion

Taiwan is considering implementing an export rule that would limit TSMC to exporting chip technologies two generations behind its leading-edge node, potentially slowing down TSMC's U.S. expansion. The new N-2 rule would restrict TSMC's ability to export cutting-edge technologies, aligning with Taiwan's goal to maintain semiconductor leadership. While TSMC's current U.S. facility complies with the rule, future expansions may face challenges meeting the stricter export framework. The focus remains on keeping key research and development activities in Taiwan to safeguard intellectual property and ensure domestic control over future process developments. Additionally, any future U.S. investments by TSMC will be subject to existing laws and regulatory oversight.