TSMC Waiver Revoked by US Government, Restricting Equipment Shipments to China
After similar restrictions were imposed on Samsung and SK Hynix, the United States government has now revoked TSMC’s waiver for shipping equipment and supplies to China, further tightening the clampdown on semiconductor production in the region. The decision threatens to disrupt TSMC’s Nanjing operations, one of its key overseas fabs.
According to a Bloomberg report, the U.S. Commerce Department has informed TSMC that its Validated End-User (VEU) authorization for its Nanjing site will be revoked effective December 31, 2025.
In an official statement, TSMC acknowledged the notification:
“TSMC has received notification from the U.S. Government that our VEU authorization for TSMC Nanjing will be revoked effective December 31, 2025. 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 removal of TSMC’s waiver means that the company will no longer be able to ship advanced chipmaking equipment and supplies directly to its Nanjing fab without going through a full U.S. export license approval process. This bureaucratic requirement significantly complicates operations and risks production slowdowns.
Samsung and SK Hynix faced a similar situation earlier this year, with their own waivers revoked and a 120-day deadline to adjust operations.
Intel was also affected in earlier rounds of restrictions.
The move aligns with the U.S. administration’s broader policy of limiting China’s access to advanced semiconductor technology, curbing its ability to expand domestic chipmaking capacity.
The decision could strain relations between TSMC and the U.S. government, despite the Taiwanese company’s massive investments in the American semiconductor sector. Under the Trump administration, TSMC pledged up to $300 billion in U.S.-based facilities, including its Arizona fabs, which are intended to bolster America’s independent chip supply chain.
Revoking TSMC’s waiver not only complicates its Chinese operations but also raises questions about the balance between U.S. security concerns and the interests of one of its most important industry partners.
The Bureau of Industry and Security (BIS) is now requiring all firms to undergo more stringent licensing processes for shipments into China, signaling a hardening stance. For South Korean firms, this was especially damaging, as large portions of DRAM and NAND flash production take place in their Chinese fabs.
For TSMC, the revocation could lead to reduced production capabilities in China unless alternative supply and licensing solutions are secured. While the company insists on keeping its Nanjing operations running smoothly, the move underlines the geopolitical risks faced by chipmakers caught between global supply chain needs and escalating U.S.-China tech tensions.
Do you think the U.S. government’s decision to revoke TSMC’s waiver will strengthen domestic security or weaken global semiconductor stability?
