US Revokes TSMC’s Licence for Exporting Advanced Technology to China

The United States has revoked Taiwan Semiconductor Manufacturing Company’s (TSMC) licence, preventing the company from freely exporting advanced technology to China. This move could disrupt TSMC’s manufacturing operations in China, where the company produces older-generation chips. The decision comes shortly after similar actions were taken against South Korean giants Samsung and SK Hynix. These restrictions are part of Washington’s broader efforts to control the flow of advanced technology to China, which it views as a threat to national security. TSMC has acknowledged the issue and is in discussions with the US government, emphasizing its commitment to maintaining uninterrupted operations at its Nanjing facility in China. The impact on TSMC is expected to be limited, as the Chinese plant only produces a small portion of the company’s revenue, manufacturing older chips that are not critical to its overall business. However, the situation may lead to delays and added complexity for global tech firms that depend on American components for their Chinese operations. As a result, China could increasingly turn to domestic alternatives, although these may be less advanced. Experts suggest this could drive innovation within China as companies adapt to the situation.