re <<system>> quake in pipeline, and who knows what can happen here there everywhere
first up, likely that rare earths go unobtainium again, and if so, maybe the resolution might be different this round; let's see
scmp.com
TSMC to see near-term ‘operational risk’ after US revokes China chip equipment waiver
The US action would have limited potential long-term impact, as TSMC’s Nanjing facility accounts for a small proportion of total capacity
Ann Caoin Shanghai
Published: 9:00am, 7 Sep 2025
The Nanjing facility of Taiwan Semiconductor Manufacturing Co (TSMC) faces “operational risk within months” but limited potential long-term impact, according to analysts, after the US government recently revoked the chipmaker’s authorisationto freely ship essential equipment to its base in eastern Jiangsu province.
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The US action, with effect from December 31, rescinded TSMC’s fast track export privilege known as Validated End User (VEU) status, which meant future shipments of US-origin semiconductor equipment to the Taiwanese firm’s Nanjing fabrication plant would require individual licences.
Without the blanket VEU coverage, sourcing chipmaking gear would be more difficult for TSMC, according to a Macquarie Group research note on Tuesday.
“If licence approvals are delayed, fabs may run into shortages that could disrupt operations within months,” the note said.
The cancellation of TSMC’s VEU status marked the Trump administration’s latest effort to tighten chipmaking equipment exports to China, following similar actions against Samsung Electronics and SK Hynix.
An aerial picture shows the production base of Taiwan Semiconductor Manufacturing Co in Nanjing, capital of eastern Jiangsu province, on August 6, 2025. Photo: AFP
In the near term, TSMC may redirect equipment orders originally designated for its facility in Kumamoto, Japan, to Nanjing, and stock up spare parts ahead of the December 31 deadline, according to Phelix Lee, a senior equity analyst at Morningstar. |
