After South Korean firms, it seems that TSMC won't be able to proceed with its operations in China easily, as US officials have also revoked the firm's waiver.
TSMC's Production Capabilities In China Could See a Decline, Following the US Decision to Revoke Equipment Waiver
It seems like the Trump administration is starting to close in on the circle when it comes to firms manufacturing in China. They are determined to prevent the presence of any leverage that China might use to push its chipmaking ambitions. In a report by Bloomberg, it is claimed that TSMC is also advised to limit its production activities in the US, as American officials have revoked the firm's VEU license for its Nanjing site. It is claimed that this move will impact the company's chip production in the region, and TSMC is working with US officials to find a solution.
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.
It's interesting to see the shift in the USG's stance. The BIS will now require firms to undergo a bureaucratic process to secure licenses for their operations in China, and several firms are being targeted. In a previous notice issued by the Commerce Department, the officials targeted Samsung, SK Hynix, and Intel by giving them a 120-day deadline before their waivers were revoked, and for South Korean firms in particular, this was a huge blow, considering that a huge portion of their DRAM and NAND production comes from China.
More importantly, TSMC is one of the biggest investors in the Trump era for now, pledging up to $300 billion in investments alone for the country's chipmaking industry; hence, such moves do strain TSMC-Trump relations. For now, the Taiwan giant is working with US officials, and their statement says that they are committed to their operations in China.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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