Taiwan Semiconductor Manufacturing Co. (TSMC), the world's leading chipmaker, is removing Chinese-made equipment from its most advanced 2-nanometer chip production lines to avoid potential U.S. export restrictions and regulatory backlash. This strategic move is in response to the proposed U.S. Chip EQUIP Act, which would reduce tax benefits and subsidies for companies using Chinese semiconductor tools. TSMC's decision includes phasing out equipment from Chinese manufacturers such as AMEC, notably etching tools, from its cutting-edge fabs located in Hsinchu and Kaohsiung. The company aims to safeguard production continuity and maintain access to U.S. subsidies amid rising geopolitical tensions between the U.S. and China. This shift also reflects the acceleration of American investment in semiconductor technology and highlights how prior U.S. controls have influenced improvements in Chinese toolmakers' capabilities. TSMC plans to begin mass production of its 2-nanometer chips using non-Chinese equipment within the year.