Biden will allow Samsung and TSMC not to close advanced semiconductor plants in China

The US Presidential Administration is expected to allow Samsung and TSMC not to close factories in China that produce advanced chips. This is reported by the US newspaper The Wall Street Journal.

Here's What We Know

The U.S. government last year imposed new export restrictions on chipmaking equipment to China. Now the innovation does not apply to companies from South Korea and Taiwan. Joe Biden intends to keep it in place.

Alan Estevez, US Under Secretary of Commerce for Industry and Security, recently said the White House was prepared to keep several exemptions from export controls in place. This means that TSMC and Samsung would be able to continue to supply China with equipment for manufacturing advanced semiconductors.

This decision by the White House can be interpreted as an admission that isolating China from the supply of semiconductor equipment is very difficult. Another reason for keeping the exemption in force is linked to companies' dissatisfaction with the high degree of interference of the U.S. authorities in their work.

Source: The Wall Street Journal