In a noteworthy development, TSMC, the spearhead of semiconductor production in Taiwan, is awaiting an unending license from the United States. This approval would enable them to continue providing U.S. affordable equipment to their manufacturing hubs in China.
TSMC released a statement to Reuters, indicating that the U.S. Bureau of Industry and Security has recommended them to pursue a “validated end-user” (VEU) authorization. This unique form of approval could potentially offer a green light for TSMC’s uninterrupted operations in China.
Expressing a positive outlook on this development, TSMC said, “We are looking forward to obtaining a perpetual license through the VEU process.” This is a first-of-its-kind scenario for the company, as it has never had to apply for VEU status before.
This announcement comes after the comprehensive export controls implemented by the Biden administration last October. These actions incorporated significant policy to limit China’s access to specific semiconductor chips that are produced globally using U.S. technology. This move was widely interpreted as an attempt to slow down Beijing’s technological and military growth.
Earlier this week, the South Korean government made a parallel announcement. They stated that Samsung Electronics and SK Hynix would receive an unending license to supply U.S. affordable chips to their Chinese factories, thereby eliminating the need for separate U.S. approvals.
TSMC, recognized globally as the top-tier contract chipmaker, had earlier received a one-year license from the United States. This approval was specifically for its factory based in Nanjing, China, which is known for producing less sophisticated 28-nanometer chips.
This anticipated unending license for TSMC could potentially signal a change in the dynamics of international tech trade, shedding light on the evolving contours of the global tech industry.
