KEY TAKEAWAYS
- Taiwan Semiconductor Manufacturing Co. said the U.S. has pulled its authorization to ship essential U.S. chip-making tools to a key site in China, disrupting its manufacturing base in the Asian country.
- The world’s largest contract chipmaker said that it was informed of the removal of its “validated end user” status for its Nanjing site effective Dec. 31.
- TSMC’s loss of the waiver to ship key tools to China follows similar removals of such authorizations for South Korean chipmakers Samsung Electronics and SK Hynix last week.
Taiwan Semiconductor Manufacturing Co. (TSM) said the U.S. has pulled its authorization to ship essential U.S. chip-making tools to a key site in China, disrupting its manufacturing base in the Asian country.
The world’s largest contract chipmaker said that it was informed of the removal of its “validated end user” status for its Nanjing site effective Dec. 31. Under the new policy, it would need an export license to ship chip-making tools to Nanjing from the U.S. Previously, it didn’t need separate approval from Washington.
“TSMC has received notification from the U.S. Government that our VEU authorization for TSMC Nanjing will be revoked effective December 31, 2025,” the company said in a statement. “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.”
TSMC makes its most advanced chips in Taiwan and in the U.S., including those for Nvidia (NVDA), and in March said it plans to invest $100 billion in U.S.-based chip manufacturing facilities. Its Nanjing site mass produces chips for consumer electronics and its Shanghai facility uses older technology to make chips, according to the Financial Times.
TSMC’s loss of the waiver to ship key tools to China follows similar removals of such authorizations for South Korean chipmakers Samsung Electronics and SK Hynix last week, according to a statement on the Federal Register. Both companies have China manufacturing facilities. The Trump administration said Friday that it’s eliminating the Biden-era loophole that allowed companies to import American chipmaking equipment and software into China without a license.