(JW Insights) Oct 12 -- TSMC is expected to be granted another one-year waiver such as the one it received last years. Washington has told the company that it can maintain its operations in China’s mainland for the foreseeable future so long as it doesn’t make significant technological upgrades, reported Wall Street Journal on October 12.

The U.S. has informed three major Asian chip makers that they can maintain their current operations in China for the foreseeable future, though significant tech upgrades would prove difficult.

On October 9, South Korea’s government said Samsung and SK Hynix were designated as “validated end users,” which will allow them to import American chip-making equipment for their existing China-based facilities without having to seek separate U.S. approval. The designation doesn’t carry an end date, South Korea’s presidential office said in the announcement.

The Biden administration in October 2022 granted one-year waivers to the three companies. But concerns persisted, with SK Hynix even floating the possibility of moving out of China in the long term if it became too difficult to continue operations there.

The two countries have agreed to a list of preapproved chip-making equipment that would allow Samsung and SK Hynix to maintain their China-based facilities and carry out minor upgrades to current production technology.

SK Hynix said the U.S. decision would contribute to the stabilization of the global semiconductor supply chain. Samsung said uncertainties about its China-based chip business had been significantly removed. A TSMC spokeswoman declined to comment, according to the Wall Street Journal report.

(Yuan XY)