Taiwan's economic affairs minister, Guo Tai-chi, recently revealed that Taiwan's technology protection rules prohibit Taiwan Semiconductor Manufacturing Company (TSMC) from producing 2-nanometer chips outside of Taiwan. This means that TSMC's most advanced technology must be kept in-house.

If former US President Donald Trump were to win the US presidential election again on Tuesday, TSMC might be forced to start producing advanced 2-nanometer chips at its factory in Arizona ahead of schedule.

"Due to Taiwan's regulations protecting its technology, TSMC can't currently produce 2-nanometer chips elsewhere," Guo said at a meeting of the legislature's economic committee.

While TSMC plans to manufacture 2-nanometer chips abroad in the future, the company will retain its core technology in Taiwan.

The news has sparked concerns that Taiwan's semiconductor industry may struggle to compete with its rivals if it's unable to keep up with the latest technology advancements.

The situation has also raised questions about the potential impact on the global chip shortage, which has been exacerbated by the COVID-19 pandemic and supply chain disruptions.

TSMC's 2-nanometer chip technology is considered one of the most advanced in the world, and the company's inability to produce it abroad could have significant implications for the global tech industry.

The situation is being closely watched by industry experts and policymakers, who are urging Taiwan's government to reconsider its rules and ensure that the country's semiconductor industry remains competitive.

In the meantime, TSMC is expected to continue to invest in research and development to stay ahead of the curve and maintain its position as a leader in the global semiconductor industry.

The company's commitment to innovation and investment in technology is expected to pay off in the long run, even if it means adapting to changing regulations and market conditions.

Ultimately, the fate of TSMC's 2-nanometer chip technology and the broader semiconductor industry will depend on the decisions made by the Taiwanese government and industry players in the coming months.