The US has changed its "Verification End User" (VEU) qualification to the US's Nanjing factory to a case-by-case application permit. The Ministry of Economic Affairs' assessment will not affect the overall industry competitiveness and will continue to pay attention.
The Ministry of Economic Affairs said that the US government has canceled the "Verification End User" (VEU) qualification for Taiwan Electric Power's Nanjing Factory, which represents the future import of US equipment by the factory, and requires a single application permission. This means that the Nanjing factory has obtained permission from the U.S. Bureau of Industry Security (BIS) to return to the "green channel" model (that is, authorization to obtain U.S. controlled goods without batch application) to the "case-by-case review" model, which will affect the expected ability of the factory's future operations.
In response to this, Taiwan Electric issued a statement saying that it has received a notice from the US side that the VEU authorization of the US government to Taiwan Electric's Nanjing factory will be terminated on December 31, 2025. Taiwan Power also said that when communicating with the US government, it will also strive to ensure that its Nanjing factory operates incessantly.
The Ministry of Economic Affairs pointed out that BIS also announced last week that it had cancelled the VEU of two Korean companies, including Samsung and Hynix, and it was estimated that this should not be against Taiwan Electric or specific manufacturers. Since the Taiwan-US semiconductor supply chain relationship is extremely close and the US continues to strengthen semiconductor control measures, domestic operators should continue to strengthen export control laws to protect their rights.
In addition, Samsung DRAM has about 2 production capacity in China, and Hynix has about 40%. Taiwan Power currently has a Nanjing factory in China involving US BIS control projects (16 nanometers). Its estimates account for only about 3% of Taiwan's overall production capacity, and may continue to decrease in the future, and its overall production proportion of Taiwan's semiconductors is lower. The estimate does not affect Taiwan's overall industry competition. The Ministry of Economic Affairs will continue to maintain close contact with the US and our businessmen, grasp its status and provide assistance.
Extended reading: The United States will withdraw its VEU license from Nanjing factory Taiwan Power Corporation: Dedicated to operating without any impact The United States withdraws Taiwan from Nanjing factory equipment exemption Foreign media: The impact is not as serious as Korean business Taiwan's Samsung and SK Hynix backstops were also exempted by Trump's withdrawal of the Chinese Nanjing factory