TSMC Has 'No Assurance' It Will Get Another China Chip Waiver From BIS
Although Taiwan Semiconductor Manufacturing Company last year secured a one-year authorization to continue certain China-related activities despite the Commerce Department’s October chip controls, the company has “no assurance that we will be able to continue securing such general authorization on a timely basis or at all,” it said in an April Securities and Exchange Commission filing. The Bureau of Industry and Security recently said it’s working with some companies to allow them to continue certain activities authorized by the waivers after they expire (see 2302240008).
TSMC also said it could face penalties for complying with U.S. export controls against China under Beijing’s anti-foreign sanctions law (see 2305030052). Chinese law “entitles Chinese entities incurring damages from a multinational’s compliance with foreign laws to seek civil remedies,” the firm said.
The company added that it so far hasn’t been “materially affected by the expanded export control regulations or the novel rules or measures adopted to counteract them. Nevertheless, depending on future developments in global trade tensions and military conflicts, such regulations, rules, or measures may have an adverse impact on our business and operations, and we may incur significant legal liability and financial losses as a result.”