The U.S. has revoked Taiwan Semiconductor Manufacturing Co.’s (NYSE:TSM) authorization to freely ship critical equipment to its Nanjing, China, facility.
American officials informed the contract chipmaker that they will end Nanjing’s Validated End User (VEU) status, aligning with similar actions against Samsung Electronics (OTC:SSNLF) and SK Hynix.
The revocation, effective December 31, 2025, means suppliers must seek individual licenses to ship gear covered under U.S. export controls instead of relying on a blanket waiver, Bloomberg reported on Tuesday.
Also Read: Taiwan Semiconductor Acts Early To Dodge US Export Curbs, Drops Chinese Tools From Chip Plants
Benzinga reached out to Taiwan Semiconductor’s investor relations for comment on the story and is awaiting a response.
The chipmaker told Bloomberg it is negotiating with Washington and expressed commitment to running Nanjing operations.
Compared to Samsung and SK Hynix, whose China plants handle a significant share of production, Taiwan Semiconductor’s Nanjing facility contributes only a fraction of its revenue. The site, operational since 2018, makes chips as advanced as 16-nanometer technology, now more than a decade old.
The Commerce Department’s Bureau of Industry and Security (BIS), which oversees semiconductor export rules, rescinded Samsung and SK Hynix’s VEU status through a federal notice last week.
The news comes amid a strong year for Taiwan Semiconductor, whose shares have gained roughly 15% year-to-date, outpacing the PHLX Semiconductor Index’s 11% return. Investor optimism has been fueled by aggressive investments from Big Tech and a robust earnings season, including strong results from Nvidia (NASDAQ:NVDA).
Price Action: TSM stock is trading lower by 1.87% to $226.53 at last check Tuesday.
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