TSMC Equipment Shipments to China Halted Following Waiver Revocation by Trump Administration, Joining Samsung and SK Hynix

The landscape for Taiwan Semiconductor Manufacturing Company (TSMC) in China is becoming increasingly precarious. Following restrictions imposed on South Korean firms, TSMC now also faces significant challenges as U. S.officials have revoked its waiver, complicating the company’s operations in the region.

TSMC’s Production Capabilities in China: Potential Decline Amid U. S.Regulatory Changes

The current U. S.administration appears to be tightening its grip on foreign manufacturing operations within China, aiming to eliminate any potential advantages that could aid China’s semiconductor aspirations. A report by Bloomberg indicates that TSMC has been advised to scale back its production activities in the U. S.due to the revocation of its VEU (valid export license) for the company’s Nanjing facility. This action poses a significant risk to TSMC’s production capabilities within China, and the company is currently engaged in discussions with U. S.officials to navigate this complex situation.

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.

This shift in U. S.government policy is noteworthy, as it indicates a move towards a more rigorous licensing process for companies operating in China. It appears that TSMC is not alone in facing these challenges; rather, a broader trend of tightening regulations is emerging that targets all firms engaged in manufacturing within this competitive landscape.

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Moreover, TSMC has positioned itself as a key player in the U. S.semiconductor industry, pledging investments amounting to $300 billion during the Trump administration. This substantial commitment underscores the strain that these regulatory moves might place on TSMC’s relationship with U. S.authorities. As the situation evolves, TSMC is proactively engaging with U. S.officials, reaffirming its dedication to maintaining operations in China despite these setbacks.

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