According to foreign media reports on September 3rd， US officials have recently notified TSMC that they have decided to terminate the “Verified End User” (VEU) status of TSMC’s Nanjing factory.
This move is similar to the U.S. revoking the VEU status of factories owned by companies like Samsung Electronics on the Chinese mainland. These exemptions are set to expire in approximately four months.
TSMC has confirmed the above news， stating in its public response that the company has received notification from the U.S. government.
“TSMC’s ‘Verified End User’ (VEU) status for its Nanjing factory will be revoked on December 31， 2025，” TSMC said in a statement. “While we are evaluating the situation and taking appropriate measures， including communicating with the U.S. government， we remain fully committed to ensuring the uninterrupted operation of the TSMC Nanjing factory.”
According to foreign media， after the revocation of the exemption， TSMC will require export licenses to ship U.S. chip manufacturing tools to its factories in mainland China.
This action by the U.S. government means that in the future， TSMC will have to apply for individual approval to ship chip equipment to its Nanjing factory， rather than enjoying the current comprehensive and fast export privileges due to its “Verified End User” status.
The TSMC Nanjing factory began production in 2018 and contributed only a small portion of TSMC’s total revenue in 2024. The factory possesses advanced technologies such as the 16nm process， which was first commercialized more than a decade ago. While the Nanjing facility’s 16nm and 12nm processes are considered mature， TSMC had previously announced plans to expand 28nm capacity， indicating a strategic shift to focus on mature nodes， often for specialized applications like automotive chips.
The U.S. government’s decision to withdraw VEU status， even for mature process nodes， signals a broader trend of increased scrutiny and control over the export of advanced manufacturing technologies， potentially impacting the global semiconductor supply chain. This measure， by requiring individual export licenses， aims to provide the U.S. with greater oversight and control over the end-use of its sophisticated chipmaking equipment.
