TSMC expecting US to waive its ban on exports to China

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The US appears to be easing its restrictions on foreign chipmakers operating in China – and Taiwan’s TSMC is hoping to reap the benefits.

Last year, thanks to the growing tension between Washington and Beijing, the US placed controls on the ability of overseas chip makers to ship any US-made components to their operations in mainland China. This was an attempt to slow down Beijing’s technological and military development.

Now, things are changing. According to Reuters, The US Department of Commerce’s Bureau of Industry and Security (BIS) has advised TSMC to apply for the “validated end-user” (VEU) programme. This will allow the chipmaker to receive US exports without any separate approvals.

TMSC is the latest firm to benefit from the easing of controls. South Korea’s government said this week that Samsung and SK Hynix have been similarly allowed to supply chip equipment to their China factories indefinitely without special approvals.

Clearly, there’s been a slight re-think by the US government. However, Reuters reports that in other areas the US remains committed to curtailing China’s advances. It wrote on Thursday that the Biden administration is considering closing a loophole that gives Chinese companies access to American artificial intelligence (AI) chips through units located overseas.

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