The United States has revoked Taiwan Semiconductor Manufacturing Company’s (TSMC) authorisation to freely ship essential gear to its primary Chinese chipmaking base. This decision potentially curtails production capabilities at the company’s older-generation facility in Nanjing. US officials recently informed TSMC of their decision to end the site’s validated end user (VEU) status.
This action mirrors steps previously taken by the US to revoke VEU designations for China-based facilities owned by Samsung and SK Hynix. These waivers are set to expire in approximately four months. TSMC confirmed the notification from the US government, stating that the VEU authorisation for TSMC Nanjing will be revoked effective December 31, 2025. TSMC is a semiconductor manufacturing company, responsible for producing chips used in a wide range of electronic devices. TSMC’s American depositary receipts listed in the US experienced a dip, falling as much as 2.3 per cent.
TSMC stated, “While we are evaluating the situation and taking appropriate measures, including communicating with the US government, we remain fully committed to ensuring the uninterrupted operation of TSMC Nanjing.” The revocation of the VEU status means TSMC suppliers will now be required to apply for individual approvals when shipping semiconductor equipment and other gear subject to US export controls to the Nanjing facility.
Previously, the plant benefited from blanket authorisation due to its VEU status. This change in policy introduces a new layer of complexity and potential delays for TSMC’s operations in China as each shipment of controlled equipment will require individual approval from US authorities.
