Exemption Revoked: US Targets TSMC’s Chip Plant in Mainland China

According to Global Times, following South Korea’s Samsung Electronics and SK Hynix, the US government has revoked TSMC’s authorization to ship essential equipment to its major chip plant in mainland China. Analysis within Taiwan suggests this move will impact TSMC’s ability to produce chips in mainland China.

Taiwan’s China Times reported on the 3rd that US officials recently notified TSMC of their decision to terminate the “Validated End-User” (VEU) status of TSMC’s Nanjing plant, mirroring the previous revocation of VEU qualifications for Samsung Electronics and SK Hynix’s mainland facilities. The report stated that TSMC’s Nanjing plant primarily focuses on mature processes, including 16nm and 28nm, mainly used for automotive electronics, IoT, mainstream smartphone chips, consumer electronics, etc. In May last year, TSMC announced it had obtained VEU authorization from the US Department of Commerce, but on September 2, it confirmed receiving notice from the US that the authorization would expire and be revoked on December 31 this year.

TSMC stated that it is evaluating the impact of the revoked exemption and taking appropriate measures, including communicating with the US government to ensure the Nanjing plant’s operations remain unaffected.