US Pulls TSMC's Waiver for China Shipments of Chip Supplies

"The US 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 US 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.

“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.”

Washington’s move jeopardizes the China operations of some of the most important companies in the semiconductor sector, hailing from two chipmaking powerhouses that are also US allies. While US officials have said they intend to issue licenses needed to keep those facilities operational, the shift from blanket permission to individual approvals introduces uncertainty about wait times to actually secure those permits. Officials are currently working on solutions to ease the bureaucratic burden, particularly given a significant backlog of existing license requests, people familiar with the matter said."

https://www.bloomberg.com/news/articles/2025-09-02/us-pulls-tsmc-s-waiver-for-china-shipments-of-chip-supplies?srnd=homepage-americas