TAIPEI – The United States has extended a waiver to Taiwan Semiconductor Manufacturing Company (TSMC) to supply US chipmaking equipment to its factories in China, the island’s Economic Affairs Minister said on Friday.
The Taiwanese semiconductor giant, the world’s largest contract producer of computer chips, was among the firms that received waivers in 2022 when Washington imposed sweeping export restrictions to prevent China from getting advanced semiconductor technology.
The US says the restrictions are necessary to prevent Chinese advances in cutting-edge computing tech, describing them as a national security threat.
But they have sparked concerns among the world’s largest chipmakers about the future of their operations in China.
After South Korea announced on Monday that its chip giants had received the US green light to send equipment to China, attention turned to the Taiwanese firm.
“My understanding is that TSMC has currently received a waiver extension from the United States. Its operations in mainland China are normal,” Taiwan’s Economic Affairs Minister Wang Mei-hua told reporters outside Parliament on Friday.
“I believe that TSMC as an international company will protect business secrets and comply with relevant regulations.”
In a statement on Friday, TSMC said it applied for – and expects to receive – permanent authorisation from Washington to allow the export of the equipment to its China-based factory.
It said it had been advised by the US Bureau of Industry and Security to apply for a Validated End-User (VEU) authorisation, which would serve as a permanent authorisation for its China operations.
“We expect to receive a permanent authorisation through the VEU process,” TSMC said, noting it did not need to apply for VEU status in the past.
The company is in a so-called quiet period ahead of an earnings release next week, during which it does not comment on company matters.
Earlier this week, South Korea – home to tech giant Samsung and its smaller rival SK Hynix, both of which received waivers in 2022 – announced that the US government had designated the companies’ factories as “verified end users”.
The decision, which eliminates the need for a separate export approval process, means the “most significant trade issue of our semiconductor companies has been resolved”, said Mr Choi Sang-mok, senior presidential secretary for economic affairs.
It “significantly alleviated companies’ uncertainties over their assembly lines in China”, he told reporters on Monday.
Semiconductors have become a flashpoint issue between the US and China, which are locked in a fierce battle over access to chipmaking technology and supplies.
Self-ruled Taiwan is home to some of the world’s most advanced companies designing and producing ever-smaller microchips – with TSMC a key leader of the industry.
China claims Taiwan as its territory, and its ramped-up military pressures against Taipei in recent years – as well as the ongoing Beijing-Washington tech tussle – have chipmaking firms on the island walking a tightrope between business and geopolitical issues. AFP, REUTERS
