The latest news shows that as the one-year exemption is about to expire (on the 31st of this month), the U.S. Department of Commerce has renewed the "indefinite exemption" for TSMC's Nanjing plant.

As we all know, in order to maintain its economic interests and hegemony in the high-tech field, the US government has long implemented high-tech export control policies against China.

In October 2022, the United States upgraded its semiconductor export control policy to China, restricting the ability of all wafer manufacturers in mainland China to obtain advanced semiconductor manufacturing equipment unless permitted by the U.S. Department of Commerce. In short, as long as they need to continue to obtain semiconductor equipment containing U.S. technology, all companies with wafer fabs in mainland China need to obtain an export license from the U.S. Department of Commerce.

Although a few days later, Samsung Electronics, SK Hynix, and TSMC all obtained one-year exemption licenses, so that the production of their factories in mainland China will not be affected by the ban for the time being.

But the difference is that Samsung Electronics and SK Hynix's wafer fabs in China have obtained "indefinite exemptions" in 2023.

In October 2023, the South Korean Presidential Office stated that the United States had decided to allow the export of semiconductor manufacturing equipment to Samsung and SK Hynix's Chinese factories without additional approval.

On the 13th of the same month, Taiwan's Ministry of Economic Affairs confirmed that TSMC's Nanjing fab, which has advanced process production capacity, has received a one-year exemption period from the U.S. Department of Commerce and can continue to manufacture 28-nanometer chips. Rather than the "indefinite exemption" like Samsung and SK Hynix. TSMC later applied for an "indefinite exemption" from the U.S. Department of Commerce.

TSMC Nanjing fab receives indefinite exemption from U.S. Department of Commerce

According to a report by Taiwan media Business Times on the 23rd, TSMC's "indefinite exemption license" applied to BIS (U.S. Bureau of Industry and Security) in October 2023 has not yet received new approval, and the exemption will expire on May 31.

Subsequently, TSMC announced on the 23rd (Thursday) that the U.S. Department of Commerce has recently granted a "certified end user" to its Nanjing factory, replacing the previous temporary written authorization issued by the Department of Commerce since October 2022, confirming that U.S. export control regulations involve The goods and services can be continuously provided to TSMC's Nanjing factory in the long term. Suppliers do not need to obtain individual licenses to supply goods. The Nanjing factory is expected to maintain the status quo.

However, TSMC also pointed out that this VEU authorization does not add new permissions, so it can only maintain the status quo of TSMC's Nanjing factory.

It is understood that TSMC currently has 12-inch wafer fabs and 8-inch wafer fabs in Nanjing and Songjiang, Shanghai respectively. They mainly serve domestic IC design companies. The most advanced process is 16nm.

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