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TSMC Expects Permission From U.S. Government To Supply Chip Tools To Their China Factory

A semiconductor manufacturing company based in Taiwan, TSMC, stated that they are expecting United State’s permission to supply their China factory in the chipmaking field. They stated their expectation of the United State government’s permission as the Washington’s restrictions on foreign chipmakers have loosen.

TSMC has been advised to apply in the “validated end-user” (usually called as VEU) program. The validated end-user (VEU) program allows the chipmaker to receive exports without the separated approvals, the company stated.

“We expect to receive a permanent authorization through the VEU process,” the Taiwan’s semiconductor manufacturing company, TSMC, stated. 

But the fact is, Taiwan Economy Minister, Wang Mei-hua, explained that the United State has neglected TSMC to supply U.S. equipment to the company’s factory in China. The relationship deterioration of China and the United States has started since last year, when the United States started to ban the  shipments of AI chips and chip making tools to China in order to counterwork China’s military development.

The Biden administration has published a complete set of export controls, and is ready to cut China’s export access off to semiconductor chips made anywhere in the world with U.S. tools. This action aims to hold up Beijing’s technological and military development.

Read also : Elon Musk Tested by US Authorities Regarding Twitter Acquisition

Apple’s company, one of the largest gadget technology companies, said that they have received U.S. authorisation on continuing their operational production activities in Nanjing as long as the company applies the validated end-user (VEU) program. Not only that, the United States also tries to cut China off in the field of Artificial Intelligence (AI) technology and the plug gaps in export controls.

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