Taipei: Taiwan's Ministry of Economic Affairs said Tuesday the U.S. revocation of Taiwan Semiconductor Manufacturing Co.'s validated end user status for its Nanjing fab will not affect Taiwan's semiconductor competitiveness.
According to Focus Taiwan, TSMC confirmed it had received notification of the move, which takes effect Dec. 31, 2025, and said it is evaluating measures to minimize the impact, including communicating with U.S. authorities.
The ministry said the Nanjing fab accounts for 3 percent of TSMC's output and a smaller share of Taiwan's semiconductor industry.
The loss of VEU status means the facility will no longer have authorization to import restricted products from the U.S. Commerce Department's Bureau of Industry and Security and will instead need individual licenses, the ministry said. The ministry said this could affect the predictability of the facility's operations.
The ministry said it will maintain communication with both the U.S. government and TSMC to stay informed and provide support if needed.
The ministry also noted that the BIS revoked the VEU status of other semiconductor fabs in China operated by Intel, Samsung and SK Hynix, and said the decision did not target Taiwan or TSMC.
Details:
The U.S. revocation applies to TSMC's Nanjing fabrication plant. The change in status removes the plant's validated end user privileges and requires the plant to obtain individual export licenses from the Bureau of Industry and Security for restricted U.S. products.
TSMC received formal notification of the revocation. The effective date of the revocation is Dec. 31, 2025. TSMC said it is assessing measures to reduce the impact and will engage with U.S. authorities as part of that assessment.
The Ministry of Economic Affairs provided output figures for TSMC's Nanjing plant, stating the plant contributes 3 percent of TSMC's total output and contributes less to Taiwan's semiconductor production.
The ministry described potential operational consequences, noting that the requirement for individual BIS licenses could change the predictability of supplies and imports for the Nanjing plant.
The ministry said it will continue contact with U.S. officials and with TSMC to monitor developments and offer support if circumstances warrant state assistance.
The ministry cited BIS actions affecting other companies, naming Intel, Samsung and SK Hynix as firms with fabs in China whose VEU status was also revoked, and presented that point as evidence that the BIS decisions were not aimed at Taiwan or TSMC.