[News] Export Crisis Averted, TSMC’s Nanjing Plant Reportedly Granted Indefinite Exemption

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TSMC’s Nanjing plant has averted an export permit expiration crisis. On May 23rd, TSMC confirmed that it has recently received the “Validated End-User” (VEU) authorization from the U.S. Department of Commerce for TSMC (Nanjing) Co., Ltd., according to a report by Commercial Times.

Currently, the same report noted that the Nanjing plant focuses on mature processes such as 16nm and 28nm, and will continue to expand to meet customer demand. With the official U.S. authorization, the plant will no longer require individual case reviews.

TSMC stated that this formal VEU authorization replaces the temporary written authorization issued by the Department of Commerce since October 2022. The VEU does not grant new privileges but confirms that the items and services covered under U.S. export control regulations can continue to be supplied to TSMC (Nanjing) Co., Ltd. without the need for individual licenses from suppliers.

The VEU authorization allows TSMC’s Nanjing plant to maintain its current production status. Industry sources cited by Commercial Times noted that, although TSMC received its indefinite exemption later than Samsung, it has not affected TSMC’s competitiveness in the local market. Offering more competitive specialized processes is the key to TSMC’s continued customer trust.

Industry sources cited in the same report further pointed out that more specialized processes help TSMC tackle geopolitical risk challenges. For example, in the panel driver IC sector, after beginning mass production of 28nm high-voltage products this year, TSMC is now developing a 16nm high-voltage FinFET process to enable customers to design more competitive OLED panel driver ICs.

Additionally, TSMC is reportedly collaborating with customers to validate its 16nm consumer-grade products and co-develop automotive-grade 16nm magnetic random-access memory (MRAM) technology. TSMC is also progressing towards higher storage density and lower cost solutions in preparation for the next generation of 16nm MRAM.

TSMC is also accelerating its deployment of future technology applications such as software-defined vehicles (SDVs), smart sensors, and edge AI, developing the most suitable products for various regional markets, spanning from China, United States, Japan, and Germany.

Read more

• [News] TSMC’s Nanjing Plant Reportedly Pushes for Indefinite Exemption From US Before the May 31 Deadline
• [News] TSMC More Ambitious on CoWoS Capacity Expansion, Targeting 60% CAGR by 2026

(Photo credit: TSMC)