One of the biggest chipmakers in the world, Taiwan Semiconductor Manufacturing Co. (TSMC), has been granted an extended waiver from US trade sanctions targeting China. This development ensures TSMC's unhindered procurement of ultramodern chip production equipment for its operations in China, says a high-ranking official in Taiwan.
On Friday, Taiwan's Minister of Economic Affairs Wang Mei-hua informed reporters in Taipei that TSMC's activities in China have not been disrupted. The exact duration of the waiver wasn't disclosed. Earlier, media sources reported that TSMC was expected to have its waiver extension for 12 months.
TSMC runs a small chip manufacturing facility near Shanghai and a plant in Nanjing, China. They specialize in producing 16-nanometer chips, which are older than the latest technology.
The Bureau of Industry and Security under the US Department of Commerce, responsible for export controls, refrained from commenting on TSMC earlier this week. They opted not to answer questions after the announcement.
According to South Korea's presidential office, Samsung and SK Hynix have been granted an indefinite restriction waiver, allowing them to ship advanced US chipmaking equipment to China.
Last October, sweeping US regulations impacted China's tech objectives and created apprehension for foreign chipmakers like TSMC and their South Korean counterparts in China. TSMC, Samsung Electronics Co., and SK Hynix Inc. had obtained 12 months waivers which guaranteed their importation of essential chipmaking machines at the time. However, there has been unease over the possibility of extension.
The US-China trade spat has been exacerbated by America's inability to keep pace with China in semiconductor production. As China continues to make significant strides in this critical technology sector, the US has grown increasingly aggressive in trade policies, seeking to protect its economic interests and maintain its technological edge. This competition over semiconductor dominance has become a focal point in the broader trade tensions, with both nations vying for supremacy in an industry vital to the future of global technology and innovation.
In late September, US President Joe Biden’s government eased restrictions on semiconductor companies that receive federal funds to build plants in the US, allowing them more room to expand in China. TSMC and Samsung will likely get US subsidies for their new plants in America.