This marks a significant shift from Taiwan's long-standing "Silicon Shield" strategy, which prioritized keeping cutting-edge semiconductor production within the country to bolster its geopolitical importance.

While the company’s first 2nm-capable US fab is not expected to be operational until the end of the decade, this policy change signals Taiwan’s willingness to adapt to global market demands. 

Minister of Economic Affairs J.W. Kuo, speaking at a government press conference, emphasised the need for businesses to make decisions based on technological advancements and profitability.

 "Those were old-time rules. Times have changed. Private businesses should make their own business decisions based on their own technological progress." Kuo said.

He added it was important to serve TSMC's US customer base as more than 60 per cent of the world’s chip-designing companies are located in the United States. 

TSMC’s overseas operations, including its Fab 21 facility in Arizona, currently produce chips on its 4nm-class N4-series technology. The next phase of Fab 21, scheduled for 2028, is expected to support 3nm-class processes, with future expansions potentially incorporating the advanced 2nm-class N2-series technologies.

Taiwan will remain the primary hub for TSMC’s cutting-edge production, with two 2nm-capable fabs planned to come online domestically by 2025–2026. 

The relaxation of export restrictions on advanced chipmaking technology comes at a time of heightened global demand for semiconductors and growing competition among nations to secure access to critical supply chains. The total investment in TSMC’s Arizona operations is expected to exceed $65 billion, underscoring the company's commitment to expanding its global footprint.