2025.09.0301:12:53UTC+00U.S. Withdraws TSMC’s Export Privilege for China Plant

The United States has rescinded the authorization previously granted to Taiwan Semiconductor Manufacturing Co. (TSMC) to ship essential equipment to its primary plant in China. This decision terminates TSMC's expedited export privilege, known as Validated End User (VEU) status, effective December 31. Consequently, any future dispatches of U.S.-origin chipmaking tools to TSMC’s facility in Nanjing will now necessitate export licenses. TSMC is currently assessing the situation and expressed its commitment to maintaining the continuous operation of its Nanjing plant. Similar revocations are slated for the Chinese facilities of Samsung and SK Hynix, effective within 120 days. This policy shift comes in the wake of President Trump’s initiatives to alleviate existing trade restrictions, which included proposals to retract Biden-era limitations on AI chips and approvals for Nvidia to sell its H20 chips in China. Although the Commerce Department stated that licenses would be issued for foreign entities to sustain current operations, any expansion or upgrades will not be sanctioned. This process lacks precisely defined timelines, potentially resulting in delays for shipments.