Decision closes “Validated Final User” program and affects operations of the Taiwanese manufacturer in Nanquim
The United States revoked the license that allowed TSMC, the world’s largest semiconductor outsourced manufacturer, sending chip production equipment to China without prior authorization. The measure will take effect on December 31, 2025, as announced on Tuesday (03.Set.2025) by a company spokesman, according to the agency AFP.
The action is part of the VEU (“Validated User”) program, which allowed foreign manufacturers of semiconductors to use American origin products in chip production in China. The decision is part of Donald Trump’s (Republican Party) government efforts to limit Asian access to advanced semiconductor technologies.
TSMC provides essential components used from smartphones to missile systems for customers such as Nvidia and Apple. The measure will directly affect the company’s operations in Nanjing, which represents 3% of the total production capacity.
The US Department of Industry and Commerce has established that companies participating in the Veu Program will have 120 days after the new rule in the federal registration to request and obtain new export licenses.
According to AFP, The US agency also said it intends to grant licenses that allow companies to maintain their existing factories in China, but will not authorize that “expand their abilities or modernize their technologies“.
“We are evaluating the situation and taking appropriate measures, including communications with the US government, and we are still fully committed to ensuring uninterrupted operation of TSMC Nanjing“The company told the AFP.
Taiwan’s Ministry of Economy acknowledged that the US measure should “affect the predictability of future factory operations“. However, the agency said that “This will not affect Taiwanese industrial competitiveness as a whole.”
