As President-elect Donald Trump prepares to take office on January 20, outgoing President Joe Biden’s administration is making its final moves. Reports suggest the Biden administration plans to expand semiconductor export restrictions on China, potentially extending the current 7nm chip manufacturing limits to include the 16nm mature process.
Taiwan Industry Economics Services database director Liu Pei-chen (劉佩真) noted in an interview on Friday that this move could impact U.S. AI chip giant Nvidia. Earlier this year, Nvidia CEO Jensen Huang (黃仁勳) indicated the company might establish an overseas headquarters in Taiwan.
Regarding Taiwan’s semiconductor foundries, Liu explained that TSMC derives 67% of its consolidated revenue from processes below 7nm, while the 16nm process accounts for just 8%, and not all of it is tied to Chinese customers. For second-tier Taiwanese foundries, which do not focus heavily on 16nm technology, the impact is expected to be minimal.
Foreign media reports suggest Biden’s plan may implement a tiered system for chip trade restrictions. The top tier would grant unrestricted access to U.S. chips for key allies, likely including Taiwan, Japan, South Korea, and the Netherlands. In contrast, the bottom tier would impose a complete ban targeting countries such as China and Russia. Liu emphasized that this framework underscores the U.S.’s determination to prevent China from acquiring advanced chips and technologies.