TSMC Caught in the Crossfire Unequal Treatment by the United States

According to reports from “Focus Taiwan“ on October 13th, the United States is updating its “validated end-user“ list for the export ban on Chinese chips. The US will extend the exemption from export control measures on semiconductor-related equipment to South Korean companies Samsung and SK Hynix indefinitely for exports to mainland China. However, TSMC will receive only a one-year exemption. Last year, the US introduced export control regulations targeting logic chips and memory chips, not only from Chinese wafer manufacturers but also from non-Chinese wafer fabs in mainland China. Initially, TSMC, Samsung, and SK Hynix obtained a one-year exemption permit. Now, as the one-year period has passed, their permits need to be reconfirmed, and recent news reveals that the US is treating them differently. The one-year exemption granted last year can be attributed to two main factors. Firstly, the US was actively promoting the Quad Alliance for semiconductors and offered preferential policies to attract the participation of South Korea and Taiwan. Secondly, the US was inviting wafer fabs from various locations to establish factories in the US and providing substantial chip subsidies. TSMC, Samsung, and SK Hynix announced investments in the US, and the US facilitated the process. As the expiration date approaches, there is significant attention on whether TSMC, Samsung, and SK Hynix can continue to receive approval from the US. The US Department of Commerce has agreed to grant Samsung and SK Hynix’s mainland wafer fabs an “indefinite exemption,“ removing the need for permits to purchase US equipment. In contrast, TSMC has only obtained a one-year exemption permit, leading to observations that TSMC is being treated differently, as mentioned by some foreign media outlets. “China Focus“ is a YouTube channel created to provide current events and pop culture headlines from you can get to know a more real China through my video. ｜ #ChineseNews #chips #ChinaFocus Thanks for your watching and subscribing.