The US has withdrawn an earlier exemption for TSMC in Nanjing and now requires separate export licenses for each shipment.
The US government has revoked a key exemption that allowed chip manufacturer TSMC to supply chip materials to its factory in Nanjing, China, without delay. From December 31, 2025, US suppliers must apply for individual export licenses for each shipment.
Rapid Export No Longer Possible
Until now, TSMC’s Nanjing factory could accelerate its export process and supply materials without US licenses thanks to the VEU (Validated End-User) exemption. This status has now been revoked, as TechRepublic reports also happened to Samsung, Intel, and SK Hynix in China. The decision is part of similar US measures to slow down China’s access to advanced chip technology.
Without the exemption, the delivery of components, materials, and machines is delayed. According to analysts, this could affect the production capacity of TSMC’s Fab 16 in Nanjing. The company states that this represents only three percent of its total production. TSMC tells Bloomberg that it remains committed to maintaining “uninterrupted operations” at the factory.
The US export service itself describes the measure as closing “loopholes” that would disadvantage American companies. It is expected that the measure will further exacerbate the already significant delays in license applications.