US Pulls TSMC’s Waiver for China Shipments of Chip Supplies (3)

The US has revoked Taiwan Semiconductor Manufacturing Co.’s authorization to freely ship essential gear to its main Chinese chipmaking base, potentially curtailing its production capabilities at that older-generation facility.

American officials recently informed TSMC of their decision to end the Taiwanese chipmaker’s so-called validated end user, or VEU, status for its Nanjing site. The action mirrors steps the US took to revoke VEU designations for China facilities owned by Samsung Electronics Co. and SK Hynix Inc. The waivers are set to expire in about four months.

Washington’s move means that TSMC, Samsung and SK Hynix’s suppliers will have to ...