"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."
"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%."
The U.S. revoked Taiwan Semiconductor Manufacturing Co.'s validated end user (VEU) authorization for its Nanjing facility, effective Dec. 31, 2025, limiting blanket export permissions for essential equipment. The decision mirrors prior revocations for Samsung and SK Hynix China sites, with those waivers set to expire in about four months. Suppliers to the affected plants must now seek individual approvals to ship semiconductor equipment and other gear covered by U.S. export controls. TSMC said it received notification, is evaluating the situation, is communicating with U.S. authorities and remains committed to uninterrupted Nanjing operations. U.S. officials have signaled intent to issue necessary licenses, but permit wait times and operational predictability now face increased uncertainty, according to Taiwan's Ministry of Economic Affairs.
Read at Fortune Asia
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