Trump Administration Adjusts Export Rules and TSMC Operates in China with License
In the last months of his term, the team of former President Donald Trump substantially modified the rules governing how technology is exported from the United States. These changes, which did not generate widespread public debate, aim to protect strategic interests by limiting how companies in China access advanced U.S. equipment and knowledge. 🏛️
Changes in Export Control Policies
The new rules focus on closing legal loopholes that previously allowed companies headquartered in China to obtain sensitive U.S.-origin technology. The stated objective is to prevent strategic rivals from strengthening their capabilities for military applications. The process for granting export licenses has become stricter, although certain discreet exceptions remain for key players in the global industry.
Key Details of the Modifications:- They were implemented in the final stretch of the Trump administration with little media coverage.
- The focus is on restricting the transfer of technology that could affect U.S. national security.
- Companies that manufacture products in China using U.S. equipment are the most affected.
In geopolitics, sometimes the devil is not in the details, but in the export licenses.
TSMC's Special License for Its Plant in Nanjing
Taiwan Semiconductor Manufacturing Company (TSMC), the world's leading contract chipmaker, obtained an annual license. This permission allows it to supply cutting-edge manufacturing equipment, much of it U.S.-origin, to its 300 mm wafer plant in Nanjing, China. The authorization reflects a balance between applying controls and not excessively harming U.S. companies that sell this equipment and depend on customers like TSMC. 💡
Central Aspects of the TSMC Case:- The license has a one-year duration and allows TSMC to temporarily bypass the stricter restrictions.
- It is crucial for TSMC to maintain and expand its operations at its Chinese factory.
- It is granted while general policies are reviewed to limit the transfer of sensitive technology.
The Silent Impact on the Tech Industry
While public attention focuses on big headlines, the technical rules that truly govern the global flow of chips are negotiated and written with much less noise. This case demonstrates how decisions on export licenses can have a profound effect on supply chains and international technological competition, defining the landscape for manufacturers and equipment suppliers alike. 🌐