Core Viewpoint - TSMC is halting the use of chip manufacturing equipment from mainland China in its advanced 2nm chip factory to avoid potential disruptions from U.S. restrictions [1][3] Group 1: TSMC's Production Plans - TSMC's 2nm production line is set to begin mass production this year, starting in Hsinchu City, Taiwan, followed by Kaohsiung City [1] - The company is also constructing a third factory in Arizona, USA, which will eventually produce these advanced chips [1] Group 2: Impact of U.S. Regulations - The decision to stop using mainland Chinese equipment is influenced by a potential U.S. regulation that may prohibit chip manufacturers receiving U.S. funding from using equipment from "foreign entities of concern," interpreted to include mainland China [3] - The proposed Chip EQUIP Act aims to restrict companies benefiting from U.S. federal support from purchasing equipment from these entities [3] Group 3: Supply Chain Strategy - TSMC is investigating all chip manufacturing materials and chemicals used to reduce reliance on mainland Chinese products [3] - The company plans to collaborate more closely with local suppliers in mainland China to enhance supply chain resilience and increase local procurement where possible [3] Group 4: Industry Trends in Mainland China - Leading chip manufacturers in mainland China are increasing the use of domestic equipment, with significant progress in developing local solutions, although lithography equipment remains dominated by ASML [4] - Northern Huachuang, the largest semiconductor equipment manufacturer in mainland China, has risen to become the sixth-largest globally, following major players like ASML and Applied Materials [4] Group 5: TSMC's Procurement Strategy - TSMC emphasizes a global procurement strategy focused on robust risk management and close collaboration with suppliers to develop diversified multi-source supply solutions [4]