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Taiwan’s TSMC receives 1-year exemption from US restrictions targeting China

TSMC given permission to ship chipmaking machinery made in US to Nanjing factory for a year

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TSMC receives a one-year license to export U.S.-made equipment to China. 

TSMC receives a one-year license to export U.S.-made equipment to China.  (CNA photo)

TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) will be allowed to ship chipmaking machinery made in the United States to its factory in China for one year, reports said Thursday (Oct. 13).

The U.S. has slapped export restrictions on such deliveries in order to frustrate China’s technological ambitions. Even so, the measures are expected to harm chipmakers from third countries.

TSMC received a one-year export license allowing it to continue its plans to expand its manufacturing operations in the Chinese city of Nanjing, per Nikkei Asia. The equipment would serve to manufacture 16-nanometer and 28nm semiconductors, CNA reported.

While confirming the approval from the U.S., TSMC executives said the export restrictions were mainly targeting chips used for artificial intelligence and supercomputers. As a result, the impact on the Taiwan company’s business would be limited and manageable, according to the executives.