Core Viewpoint - The U.S. government will revoke TSMC's exemption for shipping critical equipment to its factories in China starting next year, which may weaken TSMC's production capacity and lead to delivery delays [1][3]. Group 1: Impact on TSMC - TSMC announced that it received notification from the U.S. government regarding the revocation of its "Verified End User" (VEU) status for its Nanjing factory, effective December 31, 2025 [1]. - Following the revocation, TSMC will need to apply for export licenses to ship U.S. chip manufacturing tools to its factories in China, which could complicate operations [1][3]. - TSMC is committed to ensuring uninterrupted operations at its Nanjing factory while evaluating the situation and communicating with the U.S. government [1]. Group 2: Broader Industry Implications - The policy change poses risks to the operations of semiconductor giants in China, with potential delays in delivery due to uncertainties surrounding the speed of license approvals [3]. - TSMC's U.S.-listed American Depositary Receipts (ADRs) fell by up to 2.3% following the announcement, indicating market concern [3]. - Major suppliers to TSMC, including Applied Materials, ASML, Tokyo Electron, and KLA, also experienced stock price declines, reflecting broader market impacts from the export restrictions [3]. Group 3: U.S. Export Control Context - The U.S. government previously banned the sale of advanced process chips and manufacturing equipment to China, with exemptions granted to South Korean companies Samsung and SK Hynix, which are now also facing revoked exemptions [4]. - The U.S. Commerce Department plans to issue licenses to allow companies to continue operating existing facilities in China but will not permit capacity expansion or technology upgrades [4]. - The U.S. government's actions are seen as detrimental to the global semiconductor supply chain, with China expressing strong opposition and warning of necessary measures to protect its companies [4]. Group 4: Challenges in U.S. Export Licensing - The U.S. is facing a significant backlog of license requests, with thousands of applications from U.S. companies for global exports, including to China, currently stalled [5]. - Industry leaders are concerned that prolonged delays in license approvals will result in lost market share to competitors, as Chinese clients seek alternative suppliers [5]. - The lack of progress in the licensing process is causing frustration within the industry, with no clear timeline for when licenses will be issued [5].

Some see perhaps falling another victim to this. This morning, we're learning that the US pulled their waivers for China's shipments of chip supplies. What's happening.Okay, so breaking news story. This relates to Tsmc's validated end user agreement which allows them to move gear to that mainland China facility in Yanjing. Basically, it's the same move that we saw from the United States last week, Friday, with Samsung and SK Hynix, where essentially any supplier associated with that facility in China has to ...

What's the need to know here specifically on TSMC in China. Well, this adds yet another speedbump for TSMC and its suppliers in trying to bring equipment, chemicals and other things that they need for this facility in Nanjing. It is not a major portion of Tsmc's overall manufacturing picture. It counts for a relatively small fraction of the company's revenue.And yet it is symbolically significant because the move mirrors what the US government announced on Friday, and that is that Samsung and SK Hynix would ...

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The US has revoked Taiwan Semiconductor Manufacturing's authorization to ship essential gear to its main Chinese chipmaking base. @EdLudlow reports (Corrects spelling of anchor's last name) https://t.co/ooq7PNGztQ https://t.co/MoYEcAQTTP ...

Market Overview - The U.S. stock market experienced a significant decline, with the Dow Jones dropping over 500 points, the Nasdaq falling nearly 2%, and the S&P 500 index decreasing by 1.5% [2] - Technology stocks collectively plummeted, with notable declines in companies such as Nvidia, which fell nearly 4%, and TSMC, which dropped about 2% [3][4] - The fear index surged by 17%, indicating increased market anxiety [5] Economic Context - September has historically been a weak month for U.S. stocks, with the S&P 500 index averaging a decline of 4.2% over the past five years and over 2% in the last decade [7] - Concerns over high valuations, particularly in large-cap tech stocks, have contributed to the market downturn, with all major tech stocks experiencing declines [8] - The U.S. 30-year Treasury yield approached 5%, raising worries about long-term debt amid increasing fiscal deficits [8] Global Market Impact - The UK market faced renewed sell-offs, with long-term yields reaching their highest levels since 1998, while France is experiencing a severe political crisis affecting its bond market [11] - Analysts predict a challenging start to September, with expectations of a 25 basis point rate cut by the Federal Reserve in September and a cumulative cut of 50 basis points by the end of 2025 [12] Investment Strategies - UBS suggests that investors underweight in stocks should consider gradually entering the market and increasing exposure during downturns, particularly in sectors like energy, healthcare, and technology [12] - Morgan Stanley's Michael Wilson believes that the U.S. stock market will continue to rebound, supported by Fed rate cuts and strong corporate earnings, despite the anticipated seasonal weakness [12] Company-Specific News - Warren Buffett expressed disappointment over Kraft Heinz's decision to split, which he believes does not resolve the issues stemming from the merger he facilitated nearly a decade ago [16][18] - Following Buffett's comments, Kraft Heinz's stock plummeted by 6%, reflecting investor concerns about the company's future [16][18] - Since the merger in 2015, Kraft Heinz's stock has declined nearly 70%, with its market capitalization shrinking to $33 billion [18]

Core Viewpoint - The revocation of TSMC's VEU authorization for its Nanjing plant by the U.S. Department of Commerce signifies a shift from a "one-time approval" model to a "case-by-case approval" process, introducing uncertainties in operations and supply chain management for TSMC and its suppliers [1][5]. Group 1: Impact on TSMC - TSMC's Nanjing plant will lose its VEU authorization effective December 31, 2025, requiring upstream suppliers to apply for U.S. export licenses for controlled goods on a per-item basis, which will increase approval times and uncertainty [3][4]. - The Nanjing plant, which began operations in 2018, contributed only a small portion to TSMC's total revenue last year, and its most advanced manufacturing process is 16nm, indicating limited operational weight in TSMC's overall business [3][4]. - The operational continuity of the Nanjing plant will still depend on the import of equipment, spare parts, and chemicals, making any delays in licensing critical for maintenance, yield, and capacity assurance [3][5]. Group 2: Broader Industry Implications - The U.S. has revoked VEU authorizations for three other semiconductor companies in China, including Intel, Samsung, and SK Hynix, which will also face similar licensing requirements, indicating a broader tightening of supply chain controls [4]. - The U.S. Department of Commerce estimates an additional 1,000 license applications annually due to these changes, reflecting an increased administrative burden on companies operating in China [4]. - The policy shift aims to maintain control over the supply chain, allowing the U.S. to regulate the flow of supplies based on strategic needs rather than an outright ban [5].

ToplineThe U.S. has revoked a waiver allowing Taiwan Semiconductor Manufacturing Company, the world’s largest semiconductor firm by market value, to ship to its China-based facilities freely, the company told Forbes on Tuesday, as TSMC’s shares dropped as much as 2%. The U.S. has previously revoked similar shipping status for Samsung, SK Hynix and Intel. Anadolu via Getty ImagesKey FactsThe U.S. informed TSMC the company’s validated end user (VEU) status would be revoked for its Nanjing, China, production f ...

US Pulls TSMC’s Waiver for China Shipments of Chip Supplies. Get the details on the Bloomberg Stock Movers report. https://t.co/YtuxdKbqlT ...

The US has revoked Taiwan Semiconductor Manufacturing's authorization to ship essential gear to its main Chinese chipmaking base. @EdLudlow reports https://t.co/ooq7PNGztQ https://t.co/eGFKJEqqWW ...