Overview

• TSMC said the U.S. will cancel its Validated End User authorization for the Nanjing facility effective December 31, 2025.
• Ending the waiver requires suppliers to obtain individual export licenses for tools, spare parts and chemicals, introducing potential production delays.
• The Commerce Department’s BIS set a 120-day window after the rule is published to apply for licenses and indicated a presumption against capacity expansion or technology upgrades.
• TSMC said it is evaluating the situation and communicating with U.S. officials to keep Nanjing operating without interruption, and its shares fell about 2% after the announcement.
• The Nanjing fab makes older nodes and accounts for a small portion of TSMC’s output, and the Commerce Department estimates roughly 1,000 additional export licenses a year after waivers are withdrawn.