Sept 2 (Reuters) - Washington has revoked TSMC's
fast-track status for U.S. chip manufacturing
equipment exports to its main plant in China - a move that comes
days after revocations of the same privilege for South Korean
chipmakers.
Keen for China not to benefit too much from advanced
American technology, U.S. President Donald Trump's
administration has been re-examining export controls that it
thought were too relaxed under the Biden administration.
TSMC, SK Hynix ( HXSCF ) and Samsung Electronics ( SSNLF )
have, until now, benefited from exemptions to
sweeping restrictions that the U.S. has imposed on chip-related
exports to China.
The privilege known as validated end user status will end
December 31, TSMC said, meaning shipments of American chipmaking
tools to its plant in Nanjing after that date will require U.S.
export licenses.
The plant makes 16-nanometre and other mature node chips -
not TSMC's most advanced semiconductors. TSMC said in last
year's annual report that its Nanjing site generated about 2.4%
of overall revenue.
The world's largest contract chip manufacturer said it was
evaluating the situation and communicating with the U.S.
government, adding that it remains "committed to ensuring the
uninterrupted operations of TSMC Nanjing."
Taiwan's Ministry of Economic Affairs also said it will
continue to maintain close communication with the U.S. and with
TSMC "to monitor developments and provide necessary
assistance."
The Commerce Department said Friday that the U.S. planned to
grant license applications to allow foreign companies to operate
their existing facilities in China, but not to expand capacity
or upgrade technology.
While shares in SK Hynix ( HXSCF ) and Samsung, which have substantial
production facilities in China, sank after their exemptions were
revoked, TSMC shares were less affected, trading flat on
Wednesday morning.