TSMC can build advanced fabs in the U.S., Europe, and Japan, it cannot transfer its most advanced process technologies to production facilities abroad, as they are protected by Taiwanese law, said J.W. Kuo, Minister of Economic Affairs in Taiwan, reports the Taipei Times. That said, TSMC cannot make chips using its N2 (2nm-class) manufacturing technologies in the U.S. while these production nodes are its latest nodes.

"Since Taiwan has related regulations to protect its own technologies, TSMC cannot produce 2nm chips overseas currently," Kuo said at a meeting of the Economics Committee in Taipei. "Although TSMC plans to make 2nm chips [abroad] in the future, its core technology will stay in Taiwan."

Taiwanese regulations require domestic chipmakers to manufacture only chips using previous-generation fabrication processes at their overseas facilities, keeping the most advanced technology within the country.