US -Associated US TSMC for China Shipments of Delivery Chips

US officials recently reported TSMC about their decision to end Taiwanese Chipmaker’s so -called verified end user or VAU status for its place of nanjing. Actions Mirrors Steps, which took the US to cancel the designation for China facility owned by Samsung Electronics Co. and SK Hynix Inc. Exceptions will expire in about four months.

Moving Washington means that TSMC, Samsung and SK Hynix suppliers will have to use individual approval if they want semiconductor equipment and other equipment covered by US export controls, to acceptable Chinese facilities, instaatted blankets.

TSMC shares in Taipei slipped up to 1.3%, while suppliers included Tokyo Electron Ltd. dropped by about 2%.

“The TSMC has received a notice from the US government that our other TSMC Nanjing will be effective in December 31, 2025,” the company said in a statement. “Although we evaluate the situation and a suitable tank, we include communication with the US government, we remain fully commuting to ensure the continuous operation of TSMC Nanjing.”

The cancellation adds new obstacles to Chinese operations of some of the most important companies in the semiconductor sector and comes from two chip powerhouses, which are also American allies. While American officials said they intend to issue Lisses needed to maintain this device, shift introduces some uncertainty about the waiting period to activate these permits. Tai -Wan’s Minister of Economic Affairs in Status said that the abolition of the US would turn on the predictability of nanjing plant operations.

Officials are currently working on solutions to alleviate bureaucratic burdens, people said familiar with this thing, especially due to the significant volume of existing licensing applications. For example, the cancellation of Samsung and SK Hynix will require the federal announcement that US officials are carefully processed by another 1,000 permits.

Compared to Samsung and SK Hynix, which is placed a significant share in their production in China, the TSMC production track in the second largest economy in the world is relatively small. The Nanjing Party launched production in 2018 and, according to the Taiwanese Minister, contributed a small fraction of the total revenue of the TSMC – and about 3% of the total production capacity of the company.

The US step will not affect the competitiveness of the Taiwanese industry chips, the minister said. The campus concerns technology as advanced as the 16-nanomer process, which first became commercially available more than ten years ago.

The most important situations where the influence of Washington affects the supplier chain for electronic components that drive everything from microwave to data centers, train artificial intelligence algorithms when the plants are operated by three non-American companies.

The US generally has limited access to China to materials and equipment that could be used to produce advanced chips, which is part of the controls designed to reduce the AI ​​in the Asian nation. Export curbs affect the sale not only to Chinese companies, but about any devices that are physically in the country – including Samsung, SK Hynix and TSMC plants.

For the administration of President Joe Biden, three companies ensured indefinite surrender to continue transportation to their Chinese facility if they follow security requirements and publish some information to the US government. This designation was announced by the American officials for Samsung and SK Hynix and which TSMC advertising in the annual report -was the highest priority for chip and foreign government officials, given that semiconductor plants require the import of imports of each rider.

Loss of exception introduces the highest SOM supplier for TSMC, Samsung and SK Hynix – including machine companies such as Applied Materials Inc., ASML Holding NV, Tokyo Electron and Kla Corp. Asml dropped to how, while the materials applied did not have comments Immondae. Kla and Tokyo Electron did not respond to the comment.

Shares of applied materials and KLAs fell in the New York store on Tuesday, as well as deposit revenues for ASML, with losses exceeded the Broade market drops.

The trade in the Security and Security Office, which oversees the semiconductor export checks, announced its decision for two South Korean companies last week and said the US was closed “export gaps” that the US companies “further gave competitive companies.

The agency also formally canceled Samsung and SK Hynix in the Federal Register, a public description of US regulations – and did the same for Intel Corp., China’s devices that SK Hynix honestly. Bis did not respond to the request of the abolition of surrender to the TSMC.

The TSMC status has never been published in the federal register in the first place, for BIS, public regulation has not been changed in the same way as other affected companies. However, they all said that the clean effect on the surrender of TSMC, Samsung and SK Hynix is ​​the same.