Insider sources reveal that TSMC is phasing out the use of certain China-based equipment in its most advanced 2nm chip fabrication facilities. The move aims to minimize potential disruptions from possible U.S. restrictions.

The company plans to ramp up mass production of its 2nm chips this year, beginning at its Hsinchu plant in northern Taiwan and later expanding to Kaohsiung in the south. TSMC is also building a third facility in Arizona, which will eventually produce these next-generation chips.

Some of the equipment previously used in TSMC's advanced lines includes etching tools from AMEC and Mattson Technology—the latter, originally a U.S. company, was acquired by Beijing E-Town Semiconductor in 2016. Sources indicate that TSMC is reviewing all materials and chemicals used in chip production to reduce reliance on China-based products. At the same time, the company plans to strengthen collaboration with local partners in Taiwan to support its domestic operations. This approach is intended to enhance supply chain resilience and increase the use of locally sourced materials wherever feasible.

TSMC Chairman and CEO C.C. Wei emphasized that construction at the Arizona facility is accelerating. Once fully operational, the U.S. is expected to account for roughly 30% of the company's most advanced production, including 2nm chips and beyond.

China's leading semiconductor manufacturers are also boosting domestic equipment adoption. While lithography tools remain dominated by Dutch firm ASML, significant progress has been made in other segments. China's largest semiconductor equipment manufacturer, North Huachuang, has risen to the world's sixth-largest, following industry leaders such as ASML, Applied Materials, Tokyo Electron, Lam Research, and KLA.

Regarding equipment choices for its production lines, TSMC declined to comment on specifics. The company reaffirmed that its global procurement strategy continues to focus on robust risk management and close collaboration with partners to develop diversified sourcing solutions and maintain a broad, resilient global base.