[News] U.S. Whitelist Shake-up Spurs China’s Order Shift, Boosts Taiwan’s OSATs & IC Firms Like ASE

As the chip war heats up, the U.S. BIS unveiled an updated semiconductor whitelist on February 4, per its website. Commercial Times reports that the list, split into IC design (IW) and packaging & foundry (PW) categories, is likely to spark a shift in chip orders from China—a boost for Taiwan’s IC design and packaging leaders.

Taiwan IC Designers Face 2026 Deadline for Authorization

Notably, the report names Taiwanese IC design giants MediaTek and Realtek, which have been placed on the IW list and exempted from restrictions, as the major beneficiaries. However, other Taiwanese IC design firms must secure authorized designer status by April 13, 2026, or risk limits on advanced packaging, the report adds.

The report, citing sources from Taiwanese IC firms, highlights that most of their chips are not directly exported to the U.S. but supplied to module makers or ODMs, leaving some gray areas in enforcement. However, under the latest scenario, companies must provide foundries with relevant details, increasing compliance costs and risks, the report notes.

This is critical for memory and ASIC companies, as future exports to China or restricted regions must not exceed 30 billion transistors per IC and cannot include HBM, with DRAM and NAND also facing strict controls, as highlighted in the report.

Taiwanese OSAT Giants See Order Surge Amid China Shift

Since no Chinese IC design firms have received IW status, chips below 16nm now require U.S. approval for packaging. As a result, orders are shifting to Taiwanese OSAT companies like ASE and Powertech, which have recently seen a surge in demand from Chinese IC designers, as per the report.

On the other hand, with Chinese OSAT firms excluded from the PW list, high-end chip packaging is blocked in China, driving orders to Taiwanese OSAT companies, according to Commercial Times. While this boosts short-term business, compliance with U.S. export controls is crucial to avoid sanctions, the report notes.

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