Taiwan Awaits US Announcement on Extension of China Chip Waiver
Taiwanese Chipmakers Await US Decision on Waiver Extension
Taiwan is eagerly anticipating a decision from the US government regarding the extension of a waiver that would allow Taiwanese chipmakers to supply US chip equipment to their factories in China. Economy Minister Wang Mei-hua stated on Thursday that the fate of Taiwanese chipmakers hinges on the US government’s announcement.
US Export Controls Aim to Curb China’s Technological Advancements
In October, the Biden administration introduced comprehensive export controls, including measures to restrict China’s access to certain semiconductor chips manufactured worldwide using US tools. These controls were implemented to impede Beijing’s technological and military progress.
South Korean Chipmakers Granted Permission to Supply US Chip Equipment to China
This week, the South Korean government confirmed that Samsung Electronics and SK Hynix will be allowed to indefinitely supply US chip equipment to their facilities in China without requiring separate US approvals. The Taiwanese government is now eager to determine whether Taiwanese chipmakers will receive the same treatment.
TSMC Awaits US Decision on Loosening Measures
Taiwan Semiconductor Manufacturing Company (TSMC), the largest contract chipmaker globally, was granted a one-year authorization by the US to operate its factory in Nanjing, China, which produces 28 nanometer chips. Minister Wang expressed that it remains to be seen if the US government will further relax these measures.
Global DRAM and NAND Flash Market Dominated by Samsung and SK Hynix
Samsung Electronics and SK Hynix, the world’s top two memory chipmakers, have invested billions of dollars in chip production facilities in China. Samsung produces around 40% of its NAND flash chips in Xian, China, while SK Hynix manufactures approximately 40% of its DRAM chips in Wuxi and 20% of its NAND flash chips in Dalian. Together, these companies control nearly 70% of the global DRAM market and 50% of the NAND flash market.
Conclusion
The Taiwanese government eagerly awaits the US government’s decision on extending the chip waiver for Taiwanese chipmakers. The outcome will determine whether they can continue supplying US chip equipment to their factories in China. Meanwhile, South Korean chipmakers have been granted permission to operate their facilities in China without needing additional US approvals. The global chip market is dominated by Samsung Electronics and SK Hynix, who have invested significantly in chip production facilities in China. As the semiconductor industry evolves, decisions made by major players like the US and Taiwan will significantly impact the global supply chain.
