TSMC will no longer use Chinese-made equipment in its 2nm chip production lines, according to reports from both Digitimes and Nikkei Asia. The change comes as U.S. lawmakers advance the Chip EQUIP Act, a proposal that would prohibit companies receiving American subsidies from buying tools from “foreign entities of concern,” including Chinese firms such as AMEC and Mattson Technology. Nikkei Asia writes that while Chinese equipment was present in TSMC’s earlier advanced fabs, the company has chosen to qualify only Japanese, American, and European tools as it ramps up 2nm production in Hsinchu and Kaohsiung, with Arizona to follow. That ensures its most advanced fabs are insulated from potential U.S. restrictions at a time when federal incentives are a crucial factor in global expansion. The upcoming 2nm (N2) process marks a critical moment for the world’s largest contract chipmaker. It’ll be the first production technology by TSMC to feature gate-all-around (GAA) transistors, the chip industry’s first significant structural shift since FinFETs, and is expected to enter production within the next few months.

Full report : TSMC to stop Chinese chipmaking tools from 2nm fabs as suppliers face scrutiny due to emerging new US restrictions.