According to the Wall Street Journal, the Biden administration is expected to allow leading semiconductor manufacturers from South Korea and Taiwan to continue and expand their chipmaking operations in China. From a report: Alan Estevez, undersecretary of commerce for industry and security, announced the decision at an industry gathering last week. The exemptions, initially granted for one year in October last year, were provided to several companies, including South Korea’s Samsung Electronics and Taiwan Semiconductor Manufacturing, who have invested billions in building plants in China.

The decision to extend the exemptions reflects the challenges faced by U.S. authorities in isolating China from high-tech goods in a highly integrated global industry. The U.S. has been trying to keep advanced chips out of Chinese hands by limiting exports not only from American manufacturers but also those made by allies. However, U.S. and foreign chip makers have resisted these efforts, and governments in Asia and Europe have also pushed back. The most vocal criticism has come from South Korea, whose largest export market is China. Further reading: Ex-Samsung Executive Accused of Stealing Secrets for China Chip Factory

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Source: Slashdot – US To Allow South Korean, Taiwan Chip Makers To Keep Operations In China