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U.S. Revokes TSMC’s Fast-Track China Export Status, Forcing Licenses for Nanjing Fab

Licenses are expected only to sustain current operations, with applications to expand or upgrade likely denied.

A TSMC logo is displayed on a wall in Hsinchu, Taiwan April 15, 2025. REUTERS/Ann Wang/ File Photo
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Overview

  • TSMC said the U.S. will end its Validated End User authorization for the Nanjing facility effective December 31, 2025, shifting U.S.-origin tools, spare parts and chemicals to case-by-case export licenses.
  • The move lines up with last week’s Federal Register actions rescinding fast-track status for Samsung and SK Hynix, and BIS said former VEU participants have 120 days after rule publication to apply for licenses.
  • TSMC said it is evaluating options and communicating with U.S. officials, adding it remains committed to ensuring uninterrupted operations at the Nanjing site.
  • The Nanjing fab makes mature-node chips around 16nm and 28nm and represents a small slice of TSMC’s business—roughly 2.4% to 3% by recent estimates—keeping near-term financial impact limited as shares dipped only briefly.
  • Commerce officials indicated they intend to grant licenses to keep existing China plants running but not to expand capacity or upgrade technology, a shift that will add to license processing workloads and complicate supply planning.