TSMC announced today that the U.S. Department of Commerce has granted “Verified End User” (VEU) authorization to TSMC (Nanjing) Co., Ltd., ensuring long-term continuity for the supply of items and services covered by U.S. export control regulations to its Nanjing facility. This authorization allows suppliers to provide necessary materials without the need for individual licenses.
The VEU authorization replaces the temporary written authorization that had been in place since October 2022, confirming that the Nanjing factory can maintain its current operational status. This development comes in light of concerns following the U.S. expansion of export control bans on Chinese equipment in October 2022. TSMC’s Nanjing plant had previously received a one-year license extension, which was set to expire on May 31, raising concerns about potential disruptions.
Media reports had highlighted the impending expiration, which could have affected TSMC’s shipment schedules. However, the new VEU authorization alleviates these concerns by providing a stable and continuous framework for operations.
TSMC clarified that the VEU authorization does not introduce new permissions but solidifies the ability to supply items and services as per U.S. export control regulations. This ensures that semiconductor production at TSMC’s Nanjing facility can proceed without interruption, maintaining the status quo.
This long-term authorization underscores TSMC’s compliance with international regulations and reinforces its commitment to stable operations amid a complex geopolitical landscape. The company’s ability to secure such authorization is crucial for maintaining its supply chain and production capabilities in Nanjing.
