The US has pulled a key export waiver that once allowed Taiwan Semiconductor Manufacturing Co. (TSMC) to ship chipmaking gear to its Nanjing plant without delay. Beginning Dec. 31, 2025, the world’s largest contract chipmaker will face tighter US export controls at its China-based facility.
Waiver revocation ends fast-track exports
The waiver, known as Validated End-User (VEU) status, allowed TSMC’s suppliers to ship semiconductor tools, materials and spare parts to the Nanjing fab without securing individual US licenses. That exemption has now been withdrawn, in line with similar US actions targeting Samsung Electronics, SK Hynix, and Intel facilities in China.
“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 cited by Bloomberg. “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.”
Impact on operations
With the waiver set to expire, US suppliers will be required to obtain individual export licenses for each shipment of restricted items to TSMC’s Fab 16 plant in Nanjing. Analysts warn that delays in licensing could affect the site’s production, though the facility only represents about 3% of TSMC’s global capacity.
Shares of TSMC declined following the announcement. Bloomberg reported a drop of up to 2.3% in US trading on Tuesday.
The Commerce Department’s Bureau of Industry and Security, which oversees export controls, said the move addresses “export control loopholes” that have disadvantaged American companies. However, the policy change is expected to add to the already significant backlog of license requests for semiconductor equipment.
The decision aligns with Washington’s broader strategy to curtail China’s access to advanced semiconductor tools. While TSMC’s footprint in China is limited compared to its operations in Taiwan and the US, the move underscores the country’s influence over the global semiconductor supply chain.
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