US Tightens China Tech Curbs by Revoking TSMC Export Waiver
The move targets TSMC's Nanjing plant, escalating the U.S. strategy to limit China's access to advanced semiconductor technology.
The United States is escalating its technology standoff with China, revoking a key export waiver for Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker. The decision targets TSMC's facility in Nanjing, China, and signals a hardening of U.S. policy aimed at restricting Beijing's access to advanced semiconductor technology.
The waiver, known as Validated End-User (VEU) status, had allowed TSMC’s American suppliers to ship chipmaking equipment and materials to the Nanjing fab without needing individual licenses for each shipment. , bringing TSMC in line with similar U.S. actions that have targeted facilities operated by Samsung and SK Hynix in China.
Following the change, any U.S. supplier will need to secure a specific license to export restricted items to the plant, a process that will be conducted with a 'presumption of denial.' In a statement, TSMC said it was “evaluating the situation and taking appropriate measures” to ensure the uninterrupted operation of the Nanjing facility.
While the Nanjing plant accounts for a small fraction of TSMC's global capacity—around 3%—analysts warn that licensing delays could disrupt production. The move underscores the geopolitical risks shadowing the global semiconductor supply chain. forces a potential reliance on less advanced, locally-produced tools in China, which could impact manufacturing precision and yield.
The policy shift could inadvertently benefit Chinese domestic foundries like SMIC and Hua Hong, as customers may be forced to reallocate production. This could accelerate Beijing's long-standing goal of achieving semiconductor self-sufficiency, a core objective in its strategic rivalry with Washington. are part of a broader campaign to close export control loopholes and protect American technological leadership.