- U.S. revokes TSMC’s fast-track export status for China facility.
- Shipments now require licenses after December 31, says TSMC.
- Move mirrors revoked exemptions for Samsung and SK Hynix.
Washington has canceled TSMC's fast-track status for exporting U.S. chip manufacturing equipment to its primary facility in China. This decision follows similar revocations for South Korean chip producers. Concerned about China not to gain excessive advantages from advanced American technology, U.S. President Donald Trump's administration has been reassessing export controls it deemed too lenient under the Biden administration.
TSMC, SK Hynix, and Samsung Electronics have so far gained advantages from exceptions to extensive limits that the U.S. has placed on chip exports to China. The validated end user status privilege will end on December 31, according to TSMC, which means that shipments of American chipmaking equipment to its Nanjing facility post that date will necessitate U.S. export licenses.
The facility produces 16-nanometre and other mature node chips, though these are not TSMC's latest semiconductors. In last year's annual report, TSMC indicated that its Nanjing facility contributed approximately 2.4% to total revenue.
The world's biggest contract chip maker said it was evaluating the situation and talking with the U.S. government, pointing out that it was still committed to keeping TSMC Nanjing operational.
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Taiwan's Ministry of Economic Affairs said it would maintain regular communication with the U.S. and TSMC to monitor developments and to provide assistance as needed. The Commerce Department said on Friday that the U.S. planned to approve applications from foreign corporations to continue present operations in China, but not to scale up capacity or improve tech.
Shares of SK Hynix and Samsung, which have significant manufacturing operations in China, fell after their exemptions were removed, while TSMC shares experienced minimal impact, remaining stable.