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The US action, with effect from December 31, rescinded TSMC’s fast track export privilege known as Validated End User (VEU) status, which meant future shipments of US-origin semiconductor equipment to the Taiwanese firm’s Nanjing fabrication plant would require individual licences.
Without the blanket VEU coverage, sourcing chipmaking gear would be more difficult for TSMC, according to a Macquarie Group research note on Tuesday.
“If licence approvals are delayed, fabs may run into shortages that could disrupt operations within months,” the note said.
In the near term, TSMC may redirect equipment orders originally designated for its facility in Kumamoto, Japan, to Nanjing, and stock up spare parts ahead of the December 31 deadline, according to Phelix Lee, a senior equity analyst at Morningstar.
