Taiwanese media: TSMC stops accepting orders from customers newly included in the Entity List

According to Taiwan's Economic Daily News, in response to the latest changes in the U.S. export control entity list, TSMC immediately activated its internal inventory mechanism and stopped accepting orders from customers with concerns.

Last week, the Biden administration of the United States announced that it would add seven mainland companies and entities, including Feiteng, to the U.S. export control blacklist. After being included in the U.S. export control entity list, they can only obtain technology products originating from the United States without the consent of the U.S. Department of Commerce.

The outside world pointed out that Feiteng's chips were manufactured by TSMC. In response, TSMC said yesterday (11) that "the company has always complied with all legal regulations and will definitely implement export control regulations."

It is understood that after the new US export control entity list was released, TSMC immediately launched a comprehensive inventory mechanism to comply with regulations and align its systems with international standards. It continued to respond dynamically to updated US export control measures and stopped accepting orders from targets newly included in the entity list.

The supply chain revealed that after TSMC's internal inventory, it was found that the annual wafer output of Feiteng and other IC design companies was less than 10,000 pieces. Based on the conversion of TSMC's total shipments of 12.398 million 12-inch wafers last year, the indirect impact of Feiteng is estimated to be only about 0.08%, and the impact of other adjustments is estimated to be less than 3%.

In addition, the wafer foundry capacity has been in short supply recently, and a seller's market has been established. After TSMC stopped accepting orders from the newly added Entity List sanctions targets, the vacated production capacity was immediately taken over by other customers in line, such as automotive chips that were in short supply, and it did not remain idle.