TSMC Loses US China Waiver

Regulatory Impact & Geopolitical Risk - US government's broader effort restricts China's access to advanced technology, even for foreign companies operating within China [3] - New restrictions mirror US government actions, impacting Samsung and SK Hynix facilities in China similarly [2] - Approximately 1,000 additional licenses will need to be processed annually by US officials [3] Operational Challenges for TSMC - TSMC faces increased speedbumps in bringing equipment, chemicals, and other necessary materials to its Nanjing facility [1] - The blanket waiver of validated end user agreement for shipping goods and materials into China for chipmaking has ended [3] - Approvals will not support upgrading or expanding capacity at the facilities, focusing on maintaining the status quo [6][7] Impact on Suppliers - Suppliers, including chemical makers and potentially ASML in Europe, may face delays [4][5] - The specific companies affected remain unclear [5] TSMC Nanjing Facility Context - The Nanjing facility utilizes older 16-nanometer chip technology, which has been in the market for approximately a decade [5] - The TSMC Nanjing facility accounts for a relatively small fraction of the company's overall revenue [1]