WSJ: TSMC may also continue to export American equipment to China for the time being

TSMC may continue to export chip production equipment using American techniques to its Chinese factories, despite previously introduced export restrictions. The Wall Street Journal reports this. Chipmakers Samsung and SK hynix previously received such an exception.

Insiders report to The Wall Street Journal that TSMC will soon be allowed to supply US chip production equipment to its existing factories in China for a year. This is allowed without the US having to give separate permission for each device. This also applies to certain advanced equipment that falls under the export restrictions to China introduced last year. The US government has reportedly told TSMC that it can continue to export such equipment to China for the time being, provided it does not make “significant technological upgrades” in its Chinese factories.

The US already granted several chip makers permits last year to continue exporting American chip machines to their factories. These permits are valid for one year and are therefore about to expire. Earlier this week, South Korean manufacturers SK hynix and Samsung received new permits, although according to Reuters they are valid for an indefinite period. TSMC will be granted another license for one year, writes The Wall Street Journal.

US President Joe Biden introduced far-reaching export restrictions to China last October. As a result, advanced chip production equipment cannot simply be exported to China if it uses American technology. The rules include, for example, production machines that can be used to produce chips on 16nm or smaller. These restrictions are intended to prevent such equipment from falling into the hands of Chinese chip companies, such as chip manufacturer SMIC or memory maker YMTC, but also apply to foreign companies that own factories in China.