has made a new move to keep China in check. According to reports, US has withdrawn a special exemption from Taiwan Semiconductor Manufacturing Company i.e.
TSMC following which it won’t be allowed to send American technology to its Nanjing plant located in China. This exemption will end on December 31, this year and after this, TSMC will have to first obtain a license from the US government to send American goods to its plant. It is worth noting that TSMC is the world’s largest chip manufacturing company.
Will it affect other companies?
Apart from TSMC, this exemption has also been withdrawn from two big South Korean companies SK Hynix and Samsung. Both the companies have memory chip manufacturing factories in China. In this regard, the US government has made it clear that it will stop those policies which harm American companies. According to a CNBC report, experts say that this is being done to keep China behind in technology.
What will be the impact on TSMC?
This decision will not have a major impact on TSMC which has two chip manufacturing factories in China. One of these is in Shanghai and one in Nanjing. TSMC’s Nanjing plant is the most advanced and the US policies will have the most impact. However, the Chinese plant has only a 3% share in TSMC’s earnings and due to this the company will not be affected much by this decision. On this, TSMC has told CNBC that they are talking with the government.