TSMC Seeks Permanent US Approval As Geopolitical Tensions Rise, Aims to Secure Chip Supplies

Taiwan Semiconductor Manufacturing Co TSM is applying for permanent approval to ship U.S. chip equipment to its facility in Nanjing amid intensifying U.S.-China geopolitical friction.

The Bureau of Industry and Security (BIS) recommended that TSMC apply for a Validated End-User (VEU) authorization, a permanent authorization, Nikkei Asia reports.

Also Read: Japan Boosts Semiconductor Sector with TSMC's $13.3B Investment

In 2022, the Nvidia Corp NVDA and Apple Inc AAPL supplier won a one-year license to continue receiving U.S. equipment support for its chip facility in Nanjing. 

On October 7, 2022, the U.S. restricted China's access to sophisticated American semiconductor technology, citing national security concerns. 

They also prohibited companies from other places, like TSMC, from using American-made equipment to serve Chinese customers.

TSMC's Nanjing plant makes 12-nm and 16-nm chips generally considered at par with the 14-nm grade and less advanced 28-nm and 22-nm chips. 

The U.S. already looks to tighten its semiconductor sanctions against China further. 

Previously, Taiwan, the home to TSMC, urged cooperation and support from its allies amid the intensifying U.S.-China geopolitical tensions.

Price Action: TSM shares traded higher by 1.11% at $93.45 premarket on the last check Friday.