TSMC is reassuring the market concerning its Nanjing fabrication plant following the upcoming expiration of its US-granted Validated End-User (VEU) authorization. The VEU status is set to expire on December 31, 2025.
The statement addresses concerns that the VEU expiration could cap the plant’s 16nm and 28nm output. This capacity primarily serves specialty demand, including automotive chips, and represents approximately 3% of TSMC’s global output.
TSMC China President Roger Luo confirmed that supply chains remain secure. He stated that Chinese clients are not limited to the Nanjing plant; they can access advanced processes via TSMC’s global network, provided regulatory requirements are met. Luo stressed that operations are continuing normally, even as compliance has become stricter.