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After South Korean firms, TSMC may also face challenges continuing its operations in China. U.S. officials have revoked the company’s waiver.
**TSMC’s Production Capabilities in China Could See a Decline Following the US Decision to Revoke Equipment Waiver**
The Trump administration appears to be closing in on firms manufacturing in China. They are determined to prevent any leverage that could aid Chinese chipmaking ambitions. According to a Bloomberg report, U.S. officials have also revoked TSMC’s VEU license for its Nanjing site, advising the company to limit production activities there. This move is expected to impact TSMC’s operations in the region, and the company is working with U.S. officials to find a solution.
**TSMC Statement:**
“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.”
**USG’s Stance Shift:**
The U.S. Bureau of Industry and Security (BIS) will now require firms to undergo a bureaucratic process to secure licenses for their operations in China. Several firms are being targeted, including Samsung, SK Hynix, and Intel, which were given a 120-day deadline before their waivers were revoked. For South Korean firms, this was a significant blow, as a large portion of their DRAM and NAND production comes from China.
**TSMC’s Investment:**
More importantly, TSMC is one of the biggest investors in the Trump era, pledging up to $300 billion for the country’s chipmaking industry. Such moves strain TSMC-Trump relations. For now, TSMC remains committed to its operations in China and is working closely with U.S. officials.
