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    Home TSMC Loses China Waiver on US Chip Equipment
    International Desk
    Brand's Information English International US News

    TSMC Loses China Waiver on US Chip Equipment

    International DeskarjuSeptember 9, 20253 Mins Read
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    US Revokes TSMC Waiver, Forcing Chip Production Cuts in China by 2026.The United States government has revoked a key trade waiver for Taiwan Semiconductor Manufacturing Company (TSMC). This decision directly impacts TSMC’s major semiconductor fabrication plant in Nanjing, China. The move is part of a broader US strategy to limit advanced chipmaking capabilities within China.According to Bloomberg, the US Department of Commerce notified TSMC of the change. The company’s validated end-user (VEU) authorization will end on December 31, 2025. This license previously allowed TSMC to easily ship advanced American chipmaking equipment to its Chinese facility.

    TSMC Commits to Nanjing Operations Amid New Restrictions

    TSMC has confirmed the US government’s notification. The world’s leading chipmaker stated it is evaluating the situation and taking appropriate measures. The company is also in communication with US officials to address the implications.TSMC remains fully committed to ensuring its Nanjing plant operates without interruption. However, the revocation will inevitably complicate equipment maintenance and upgrades. This could gradually reduce the facility’s production capacity and technological advancement over time.

    TSMC Loses China Waiver on US Chip Equipment

    Broadening US Policy Targets Global Chip Giants

    This action against TSMC is not an isolated event. It reflects a widening of established US policy. Recently, the Commerce Department also moved to revoke similar waivers for Samsung and SK Hynix.Those South Korean firms received a 120-day deadline before their China waivers expire. This policy shift creates significant challenges for global chipmakers with major production hubs in China. The goal is to restrict China’s access to cutting-edge semiconductor technology.The situation presents a complex challenge for TSMC. The company is simultaneously making massive investments in new US-based fabrication plants in Arizona. Navigating the geopolitical tensions between its major operational bases in the US, Taiwan, and China will require careful diplomacy.

       

    Samsung India Partners With Amazon, Flipkart for Official Sales

    The revocation of TSMC’s waiver signals a new phase in US tech policy. This move will directly constrain advanced semiconductor manufacturing within China, reshaping global supply chains for years to come.

    Info at your fingertips

    What is a validated end-user (VEU) waiver?

    A VEU waiver is a US government license. It allows a company to receive certain controlled technology without applying for separate export licenses for each shipment, streamlining the process significantly.

    How will this specifically affect TSMC’s factory in China?

    The factory will face hurdles in importing new US-made equipment and maintaining existing tools after 2025. This could limit its ability to produce more advanced chips and may eventually cap its output capacity.

    Why is the US government taking this action now?

    The action continues a long-standing policy to prevent China from acquiring advanced semiconductor technology that could be used for military modernization. It strengthens existing export control measures.

    Does this affect the price of consumer electronics?

    Not directly in the short term. The Nanjing plant produces less advanced chips used in automobiles and everyday devices. Long-term global supply chain shifts could eventually have broader market effects.

    Have other companies been impacted by similar actions?

    Yes. Major semiconductor producers like Samsung and SK Hynix have also received notices that their waivers for Chinese operations will be revoked after a short grace period.

    Get the latest News first — Follow us on Google News, Twitter, Facebook, Telegram , subscribe to our YouTube channel and Read Breaking News. For any inquiries, contact: [email protected]
    brands china chip english equipment information international loses news tsmc waiver
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