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U.S. Allows TSMC to Import Chipmaking Equipment to its China Fabs

posted by janrinok on Monday January 05, @01:53PM   Printer-friendly

Arthur T Knackerbracket has found the following story:

https://www.tomshardware.com/tech-industry/semiconductors/u-s-allows-tsmc-to-import-chipmaking-equipment-to-its-china-fabs-samsung-sk-hynix-likewise-receive-go-signal-from-commerce-department

The U.S. Department of Commerce has issued a permit to Taiwan Semiconductor Manufacturing Company (TSMC) to import U.S.-made chip-making equipment into China for its Nanjing fab. According to Reuters, Samsung and SK hynix were also given import licenses to bring in specialized equipment that used American-made components into their Chinese factories. These three chipmakers used to enjoy validated end-user status, meaning they could freely import restricted items into China without asking for individual licenses. However, this privilege has expired at the end of 2025, meaning they now have to seek annual approval from Washington, D.C., to continue receiving advanced tools.

"The U.S. Department of Commerce has granted TSMC Nanjing an annual export license that allows U.S. export-controlled items to be supplied to TSMC Nanjing without the need for individual vendor licenses," the company said in a statement to Reuters. It also said that this "ensures uninterrupted fab operations and product deliveries." This move to require annual licenses for the Chinese factories of these chipmakers is a part of the White House's effort to keep advanced chipmaking tools out of China.

Beijing has been working hard to achieve "semiconductor sovereignty," just as the U.S. has been trying hard to prevent it from acquiring the latest chips. Aside from that, ASML, the only manufacturer of cutting-edge chipmaking tools, has been banned from exporting its products to China and servicing those that are already installed. Because of this, we've seen reports that the country is covertly working on reverse engineering EUV lithography tools, and that it has even come up with a "Frankenstein" EUV chipmaking tool, but has yet to produce a single chip.

The U.S. does not allow EUV lithography machines with U.S. technology to be exported to China, even to companies like TSMC and Samsung that have Chinese factories. This means that these fabs are only limited to mature nodes of 16-nm and up. The revocation of the validated end-user status for the China-based fabs of these companies shows that Washington is tightening its grip on chipmaking machines, even older DUV tech, to make it difficult for Beijing to create its own technology.

Despite this, the East Asian nation is pushing hard to develop its own equipment. The central government has even told its chipmakers to use homegrown tools for half of new capacity. And while the country is still years behind cutting-edge tech from ASML and other Western companies, it's slowly taking steps in the right direction.

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  • (Score: 3, Touché) by Username on Monday January 05, @02:45PM (3 children)

    by Username (4557) on Monday January 05, @02:45PM (#1428830)

    >equipment that used American-made components
    So they're going with component level restrictions? Let me guess, it had a Qualcomm IC in it?

    • (Score: 0) by Anonymous Coward on Monday January 05, @09:08PM (2 children)

      by Anonymous Coward on Monday January 05, @09:08PM (#1428849)

      What confuses me is that these machines can be made without anything at all patented by the Chinese, and without any components with a Chinese origin that could be subject to a US-style export ban.

      wtf is going on with China allowing these machines to persist? As has been shown for everything from cars to washing machines, Chinese involvement is ubiquitous. Why wouldn't China ban dealings with ASML as a national-security risk?

      • (Score: 1, Interesting) by Anonymous Coward on Monday January 05, @09:49PM

        by Anonymous Coward on Monday January 05, @09:49PM (#1428852)

        Why wouldn't China ban dealings with ASML as a national-security risk?

        Because business is quite different from the headlines that spin the "rivalry"

      • (Score: 4, Informative) by bmimatt on Monday January 05, @11:36PM

        by bmimatt (5050) on Monday January 05, @11:36PM (#1428855)

        The Dutch advanced chip wafer technology is prduced by ASML, the world's only producer of Extreme Ultraviolet (EUV) lithography machines, is essential for etching the tiny circuits on silicon wafers for cutting-edge chips. The process involves lasers and ultra-precise optics, which are critical for AI and high-performance computing. These complex machines, costing millions and requiring huge logistics, allow companies like TSMC, Intel, and Samsung to create smaller, faster, and more powerful processors.
        China doesn't have the tech and skills to produce advanced chips, they'd need equipment from ASML and people with very specialized skillset. The Dutch (appropriately) won't allow them to have them, so China can only manufacture less complex (larger) chips.

  • (Score: 5, Interesting) by Fnord666 on Tuesday January 06, @07:21PM (2 children)

    by Fnord666 (652) on Tuesday January 06, @07:21PM (#1428911) Homepage
    Veritasium did a really good video about ASML entitled "The Ridiculous Engineering Of The World's Most Important Machine". I found it fascinating.
    https://youtu.be/MiUHjLxm3V0 [youtu.be]
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