Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it has obtained permanent authorization from the US government, confirming that the items and services subject to US export control regulations could continue to be provided to TSMC’s Nanjing fab without the need for vendors to get individual licenses.
Issuance of the validated end-user (VEU) authorization maintains the status quo for production of semiconductors at its Nanjing fab, TSMC said in an e-mail.
In October 2022, the chipmaker secured a one-year general authorization from the US government, which allows TSMC to continue its fab’s operations in Nanjing, China, the chipmaker said.
Photo: Ann Wang, Reuters
The general authorization has been renewed and extended to until May 31 this year, it added.
TSMC operates a 12-inch fab in Nanjing utilizing 16-nanometer technology and less advanced 28-nanometer process technology.
It said it is expanding its 28-nanometer chip capacity there to address increasing demand from customers in China.
“Recently, the US Department of Commerce issued a Validated End User authorization to TSMC Nanjing Co Ltd (台積電 (南京) 有限公司),” TSMC said. “This formal VEU authorization replaces ad hoc letter authorizations the Commerce Department had issued previously since October 2022.”
To prevent China from advancing its semiconductor manufacturing capabilities, the US has tightened export controls for advanced computing integrated circuits (ICs), computer commodities that contain such ICs and certain semiconductor manufacturing items. It also tightened controls on transactions involving items for supercomputer and semiconductor manufacturing end-uses.
The new controls added new license requirements for items subject to the US Export Administration Regulations that would be sold to a semiconductor fabrication facility in China, as well as on US persons’ activities supporting such facilities or semiconductor manufacturing items.
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