Taiwan Semiconductor Manufacturing Co. is eliminating Chinese-made chipmaking equipment from its new 2-nanometer production lines, the most advanced in the industry, according to multiple reports from Nikkei Asia. The technology is scheduled to enter mass production this year and will form the backbone of plants in Hsinchu and Kaohsiung, with a third site under construction in Arizona. Executives moved to replace tools supplied by Chinese vendors such as Advanced Micro-Fabrication Equipment Inc. (AMEC) after Washington floated the Chip EQUIP Act and other measures that would deny tax breaks and subsidies to semiconductor manufacturers that continue to use China-sourced machinery. By restructuring its supply chain now, TSMC aims to safeguard access to U.S. incentives and avoid any production disruptions stemming from future export-control actions. The decision underscores the widening technology rift between the United States and China and highlights the leverage U.S. policymakers hold over global chipmakers seeking federal support. It also threatens to curb sales for Chinese equipment makers just as Beijing tries to strengthen its domestic semiconductor ecosystem, while reinforcing TSMC’s position as the world’s leading producer of cutting-edge chips.