TSMC's exemption for its factories in China is to be revoked by the U.S., affecting chip production.

Samsung and SK Hynix, after that, TSMC's factory in China is exempt from being revoked by the US

TSMC said on September 2 that starting next year, the US government will revoke the exemption for the company to transport key equipment to its factory in mainland China.

Reuters and Bloomberg reported that this move could weaken the production capacity of TSMC's factory, leading to delivery delays. Just a few days ago, the US revoked the exemptions for the Chinese factories of South Korean chipmaker Samsung and SK Hynix, and the restrictive measures will take effect after 120 days.

According to reports, TSMC released a statement on the 2nd saying that the company has received notice from the US government.

"The 'Verified End User' (VEU) status of TSMC's Nanjing factory in the US will be revoked on December 31, 2025," TSMC stated in the statement. "Although we are assessing the situation and taking appropriate measures, including communication with the US government, we remain fully committed to ensuring the uninterrupted operation of TSMC's Nanjing factory."

Reuters reported that after the exemption is revoked, TSMC will need an export license to deliver US chip manufacturing tools to its factory in China.

Bloomberg stated that the US government's move means that TSMC will have to apply for individual approvals when delivering chip equipment to its Nanjing factory in the future, rather than the current full and fast export privileges granted due to the 'Verified End User' status.

Original: www.toutiao.com/article/1842201640446976/

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