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Why did the US revoke chip export waivers for TSMC Nanjing?
The US revoked the Validated End User (VEU) status for TSMC's Nanjing plant to tighten export controls on advanced US semiconductor technology. This move aligns with actions against other companies like Samsung and SK Hynix, aiming to limit China's access to critical chipmaking tools and reduce its technological advancement.
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How will this affect Chinese tech companies?
Chinese tech companies relying on US-origin chips and equipment may face increased difficulties in sourcing advanced semiconductors. The revocation means future shipments of US technology to China will require individual licenses, creating delays and uncertainty for Chinese operations and potentially slowing down their development.
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What does this mean for US-China trade relations?
This move signals a hardening stance from the US in its ongoing tech rivalry with China. It reflects efforts to restrict China's access to cutting-edge technology, which could lead to increased tensions and further trade restrictions, impacting global supply chains and diplomatic relations.
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Are there risks of escalation in tech conflicts?
Yes, tightening export controls can escalate tensions between the US and China. Both countries may respond with their own restrictions or retaliatory measures, potentially leading to a broader tech conflict that could disrupt international markets and innovation efforts.
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What is the significance of TSMC's Nanjing plant in this context?
TSMC's Nanjing plant, established in 2018, produces chips using older technology like 16-nanometre processes. While it contributes a small share of TSMC's revenue, its strategic location in China makes it a key target in US efforts to limit China's technological progress and control the flow of advanced semiconductor technology.
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Could this move impact global chip supply chains?
Yes, restricting US technology exports to China could cause disruptions in global supply chains. Companies worldwide depend on Chinese manufacturing and US technology, so increased restrictions may lead to delays, higher costs, and shifts in manufacturing strategies.