TAIPEI (Taiwan News) — Economics Minister Kuo Jyh-huei (郭智輝) said Tuesday that Taiwan’s TSMC will not produce 2 and 1.6 nm chips in the US next year.

Kuo was responding to concerns raised by TPP legislator Chang Chi-kai (張啓楷) during a legislative hearing, per CNA. He questioned whether TSMC, which makes 90% of the world’s advanced chips, would move cutting-edge chip production to the US. However, a timeline was not announced.

The concerns come as US President Donald Trump and TSMC CEO C.C. Wei (魏哲家) announced Monday that TSMC will invest an additional NT$3.29 trillion (US$100 billion) in the US to build three chip fabs and two advanced packaging plants. Trump said this move would prevent high tariffs on chips exported to the US. 

Premier Cho Jung-tai (卓榮泰) said the government understands the chip sector’s expansion strategies and has had close discussions with industry leaders. He said the government and industry are pursuing a strategy that serves Taiwan’s national interests.

Additionally, Kuo denied claims that TSMC’s investment would turn it into a US company. He said the chipmaker’s investment would not decrease Taiwan’s value to the world.

Advanced chips are typically defined as at 5 nm or below. Generally, the smaller the process, the more powerful the chip.

TSMC plans to mass produce 2 nm chips at its Hsinchu Baoshan fab in Taiwan in the second half of 2025, per TrendForce. The company announced in April that it will produce the ultra-advanced 1.6 nm chips in 2026, per Nikkei Asia.

As for its Arizona operations, the company’s first fab will produce 4 nm and 5 nm chips in the second half of this year. The second fab will produce 3 nm in 2028, and the third fab will produce 2 nm and beyond by the end of the decade.