The U.S. has revoked Taiwan Semiconductor Manufacturing Co.’s authorization to freely ship essential gear to its main Chinese chipmaking base, potentially curtailing its production capabilities at that older-generation facility.
American officials recently informed TSMC of their decision to end the Taiwanese chipmaker’s so-called validated end user, or VEU, status for its Nanjing site. The action mirrors steps the U.S. took to revoke VEU designations for China facilities owned by Samsung Electronics Co. and SK Hynix Inc. The waivers are set to expire in about four months.
Washington’s move means that TSMC, Samsung and SK Hynix’s suppliers will have to apply for individual approvals when they want to ship semiconductor equipment and other gear covered by U.S. export controls to the affected China facilities, instead of the blanket authorization those suppliers currently have because of the plants’ VEU status.
TSMC’s shares slid as much as 1.3% in Taipei, while suppliers including Tokyo Electron Ltd. fell about 2%.
“TSMC has received notification from the U.S. government that our VEU authorization for TSMC Nanjing will be revoked effective Dec. 31, 2025,” the company said in a statement. “While we are evaluating the situation and taking appropriate measures, including communicating with the U.S. government, we remain fully committed to ensuring the uninterrupted operation of TSMC Nanjing.”
