The U.S. government just made a big move against TSMC, the world’s largest chipmaker. It revoked a special permit called “Validated End-User” (VEU) for TSMC’s factory in Nanjing, China. This permit used to let TSMC send chip-making tools to its Nanjing unit without asking for a separate pass each time. This change kicks in on December 31, 2025.
Once the VEU permit is gone, every single piece of equipment headed to the Nanjing plant will need specific permission. This includes vital tools for making chips, like those for printing circuit designs, etching, checking quality, and depositing materials. Getting these individual approvals from the U.S. Department of Commerce will likely cause delays and make things tougher.
TSMC has stated it is looking into what this means. The company is also talking with the U.S. government. They promised to keep their Nanjing factory running without any hitches. This information comes from a report by Tom’s Hardware published on Tuesday, October 2.
The Nanjing factory focuses on making older, more common chips, known as “mature nodes,” like 12 nm and 16 nm. These chips are used in things like cars, everyday electronics, and 5G networks. But this plant doesn’t bring in a lot of money for TSMC, only about 2.4% of its total earnings. Most of TSMC’s advanced chip production happens in places like Taiwan and the United States.
So, Why Make This Change?
This action by the U.S. is part of a bigger plan to limit China’s access to advanced technology. It reflects stricter export rules. Other major companies, like Samsung, SK Hynix, and Intel, have already had similar export permissions taken away for their factories. This situation clearly shows the U.S. wants more control over advanced semiconductor technology being transferred.
Experts at Tom’s Hardware pointed out that while TSMC won’t see a huge financial hit, this move carries a lot of political weight. It could push China even harder to become independent in technology. This might help Chinese companies like SMIC and HuaHong grow, especially in making these mature node chips.