By Gloria Nosa
The United States has tightened restrictions on the global semiconductor supply chain, revoking Taiwan Semiconductor Manufacturing Company’s (TSMC) permits to import U.S.-made chipmaking equipment into its Chinese factories.
The decision, announced by the U.S. Department of Commerce on August 29, follows the Trump administration’s move to abolish blanket licenses that previously allowed Samsung Electronics, SK Hynix, and Intel to ship advanced semiconductor manufacturing tools to their Chinese plants without case-by-case approval. TSMC has now been placed under the same restrictions.
According to a Bloomberg report, Washington recently withdrew TSMC’s “Verified End-User (VEU)” designation, a status that had granted the company smoother access to U.S.-manufactured semiconductor tools for its operations in China. While Samsung, SK Hynix, and Intel were publicly listed in the Federal Register during the revocation process, TSMC was not named because it had not been part of the original VEU designation under Trump’s earlier policy.
TSMC operates two main facilities in mainland China: its Shanghai plant, which manufactures legacy chips of 100 nanometers or larger, and its Nanjing factory, which produces more advanced 16–28 nanometer semiconductors—a technology that has been in commercial use for over a decade. The Nanjing plant, however, contributes only about 3% to TSMC’s overall global output.
In response, TSMC said it is reviewing the development and may engage with U.S. authorities to clarify the implications. “We will assess the situation and take appropriate measures, including communication with the U.S. government. We remain committed to ensuring the Nanjing factory operates without disruption,” the company stated.
The revocation underscores Washington’s broader effort to restrict China’s access to advanced semiconductor technology amid ongoing geopolitical tensions and intensifying competition in the global chip industry.
