Taipei, Sept. 3 (CNA) The U.S. revocation of Taiwan Semiconductor Manufacturing Co.'s (TSMC) validated end user (VEU) status for its Nanjing fab will not affect Taiwan's semiconductor competitiveness, the Ministry of Economic Affairs (MOEA) said Tuesday.
TSMC confirmed it had received notification of the move, which takes effect Dec. 31, 2025, and said it is evaluating measures to minimize the impact, including communicating with U.S. authorities.
The MOEA said the Nanjing fab accounts for only about 3 percent of TSMC's output, and an even smaller share of Taiwan's overall semiconductor industry.
The loss of VEU status means the facility will no longer enjoy blanket authorization to import restricted products from the U.S. Commerce Department's Bureau of Industry and Security (BIS), and will instead need individual licenses, the ministry said. This could affect the predictability of its future operations, it added.
The ministry said it will maintain communication with both the U.S. government and TSMC to stay informed and provide support if needed.
It also noted that the BIS revoked the VEU status of other semiconductor fabs in China operated by Intel, Samsung and SK Hynix, showing the decision did not specifically target Taiwan or TSMC.
