Analysis: How Chinese Chipmakers Could React to Tighter U.S. Export Controls on Mid-Tier Nodes

TSMC seeks exemptions for customers as U.S. tightens rules for advanced chip exports

Close-up of a semiconductor wafer. Photo: Bloomberg

The United States has expanded restrictions on chip exports to include 16/14 nanometer nodes, prompting The Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) to seek exemptions for affected customers. At the same time, China’s semiconductor industry is accelerating efforts toward self-reliance and the development of domestic supply chains in reply to the escalating limitations.

Mark Liu, chairman and CEO of TSMC, said during the company’s quarterly earnings call Thursday that his company was applying for special licenses to assist affected customers. Although Taiwan and other close U.S. allies are exempt from the export restrictions, further curbs could affect demand from TSMC’s clients.