TSMC Encounters New US Export Restrictions

(MENAFN) On Tuesday, the United States rescinded the Taiwan Semiconductor Manufacturing Corporation's (TSMC) permission to send chip machinery to China without needing a license, as reported by a news agency.

TSMC was recently informed by the US government that its validated end user (VEU) status for its facility in Nanjing, China, would be discontinued.

This action follows a similar decision where the US revoked VEU designations for Samsung Electronics Co. and SK Hynix Inc. factories in China.

These exemptions are set to expire in approximately four months.

“TSMC has received notification from the US Government that our VEU authorization for TSMC Nanjing will be revoked effective December 31, 2025,” the company stated.

TSMC mentioned that it has assessed the circumstances and taken suitable steps, including communicating with US authorities, while stressing its commitment to maintaining continuous operations at the Nanjing plant.

As a consequence of Washington’s move, suppliers to TSMC will lose the broad permissions they currently hold due to the plant’s VEU status.

Going forward, they must apply for individual licenses each time they plan to ship semiconductor machinery and other equipment subject to US export controls to the Nanjing site.

This policy change is putting the China-based operations of some of the largest semiconductor companies, including Samsung Electronics and SK Hynix—both US allies—at risk.

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