TSMC Aims for Permanent US Export Permit for China Ops

Last updated: November 19, 2023

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading contract chip producer, is seeking a permanent permit from the US to export chip-making equipment to its China-based factory.

Taiwan's TSMC Aims for Permanent US Export Permit for China Operations
Courtesy of: dailysabah.com

This move comes after the US imposed export restrictions to prevent China from acquiring advanced semiconductor technology, citing national security concerns.

TSMC, which received waivers last year, is now applying for a “Validated End-User (VEU)” authorization, which would serve as a permanent permit.

“We expect to receive a permanent authorization through the VEU process,” the business stated. If granted, this would eliminate the need for separate export approval for TSMC’s Nanjing factory.

South Korea’s tech giants, Samsung and SK Hynix, have already received the US green light, easing uncertainties over their China operations.

“The most significant trade issue of our semiconductor companies has been resolved,” said Choi Sang-mok, senior presidential secretary for economic affairs.

Semiconductors have become a hot-button issue in the US-China tech war, with Taiwan, home to TSMC and other advanced chip-making companies, caught in the crossfire. Amid Beijing’s increased military pressure and the ongoing tech tussle, Taiwan’s chipmakers are walking a tightrope between business and geopolitical issues.

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