Taiwan Semiconductor Manufacturing Co. is removing Chinese-made chipmaking equipment from its most advanced 2-nanometer production lines, which are scheduled to enter mass production later this year, according to multiple reports from Nikkei Asia. The shift affects tools supplied by companies such as Shanghai-based Advanced Micro-Fabrication Equipment Inc. (AMEC) and is aimed at averting potential penalties under the proposed U.S. Chip EQUIP Act, legislation that would withdraw tax incentives and subsidies from semiconductor manufacturers that deploy Chinese equipment. By pre-emptively excluding the gear, TSMC seeks to shield production from any future U.S. export-control measures that could disrupt deliveries to key customers. TSMC’s decision underscores deepening geopolitical tensions over semiconductor supply chains and the accelerating technology decoupling between Washington and Beijing. The policy is expected to further weaken the position of Chinese toolmakers in leading-edge manufacturing, while reinforcing the dominance of U.S., Japanese and European equipment suppliers in a market worth about $100 billion.