The Trump administration has placed new restrictions on semiconductor exports for Taiwan Semiconductor Manufacturing Co., (TSMC) weeks after loosening controls on American manufacturers.
TSMC, the world’s largest semiconductor manufacturer, confirmed in a statement to MeriTalk that the company was notified by the Trump administration that its authorization to fast-track U.S. chip manufacturing equipment exports to its main factory in Nanjing, China has been revoked.
“While we are evaluating the situation and taking appropriate measures, including communicating with the US government, we remain fully committed to ensuring the uninterrupted operation of TSMC Nanjing,” the company said in a statement.
TSMC’s privilege – validated end user status – is set to end on Dec. 31 and TSMC will then be required to receive U.S. export licenses, the company said.
Last year, the Biden-Harris administration awarded the TSMC Arizona Corporation up to $6.6 billion in direct funding under the CHIPS and Science Act, which marked the first major finalized award under the program launched to bolster domestic semiconductor manufacturing in the race against China’s tech capabilities such as in artificial intelligence.
The move for tighter controls follows recent statements from President Donald Trump who said he negotiated a deal with American semiconductor manufactures Advanced Micro Devices and Nvidia to sell chips for AI to China if they pay a 15 percent fee.
Democrats decried the deal, saying that it “blatantly violates the purpose of export control laws,” and that it could jeopardize national security.