TSMC Stock Slid On Tuesday Morning – Find Out More On The Latest US Action

Shares of Taiwan Semiconductor Manufacturing’s (TSM) declined over 2% in Tuesday’s pre-market session after the United States reportedly revoked the company’s authorization to ship essential gear to its main Chinese chipmaking base freely. This is likely to curb the company’s production capabilities at the facility, the report added.

According to a Bloomberg News report, the Taiwanese chipmaker was recently informed by the U.S. about the decision to end the Nanjing site’s validated end user (VEU) status.

The report noted that this move is similar to the steps taken by the U.S. to revoke VEU designations for China facilities owned by Samsung Electronics and SK Hynix. The waivers are expected to expire in about four months, it said. “TSMC has received notification from the U.S. Government that our VEU authorization for TSMC Nanjing will be revoked effective December 31, 2025,” the company told Bloomberg.

Retail sentiment on TSMC remained unchanged in the ‘bullish’ territory, with message volumes at ‘normal’ levels, according to data from Stocktwits. The report added that TSMC’s manufacturing footprint in China is relatively small when compared to Samsung and SK Hynix. TSMC’s Nanjing facility, which commenced operations in 2018, accounted for only a minor portion of the company’s overall revenue in the previous year.

Bloomberg reported that last week, the Commerce Department’s Bureau of Industry and Security announced its VEU decision for the two South Korean companies, with the U.S. tightening export rules to eliminate loopholes that put American companies “at a competitive disadvantage.”

U.S.-listed shares of TSMC have gained nearly 16% this year and have jumped over 33% in the last 12 months. 

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