Core Viewpoint - The U.S. government has revoked TSMC's authorization to freely ship necessary equipment to its Nanjing plant in mainland China, which may limit the production capacity of this mature process chip factory [2][3]. Group 1: Impact on TSMC - TSMC confirmed it received notification from the U.S. government that its "Verified End Use" (VEU) authorization for the Nanjing plant will be revoked by December 31 of this year, and the company is assessing the situation and taking appropriate measures [2][3]. - The Nanjing plant, which initially focused on 16/12nm processes, has shifted to expand its 28nm capacity due to increasing U.S. export controls, with a monthly production capacity of 20,000 wafers for 16/12nm and 40,000 wafers for 28/22nm [3][4]. - TSMC's mainland operations generated approximately NT$26 billion in profit last year, making it an important source of revenue despite its relatively low contribution percentage [3]. Group 2: Broader Industry Implications - The U.S. government's actions are seen as a significant threat to the operations of major semiconductor companies in mainland China, particularly those from Taiwan and South Korea [3][4]. - The shift from blanket approvals to individual license applications for semiconductor equipment has introduced uncertainty regarding the timeline for obtaining necessary permits, which could impact operational continuity [4]. - The U.S. has imposed extensive restrictions on mainland China's access to materials and equipment used for advanced chip manufacturing, aiming to limit China's AI capabilities [4].