TSMC Shares Slide 1.07% Amid U.S. Export Curbs, $3.17B Volume Ranks 16th

On September 2, 2025, Taiwan Semiconductor Manufacturing Co. (TSMC) closed with a 1.07% decline, trading with a $3.17 billion volume, ranking 16th in market activity. The move followed a regulatory shift impacting its operations in China.

The U.S. government has revoked TSMC’s "Validated End User" (VEU) status for its Nanjing facility, effective December 31. This designation previously allowed expedited access to U.S.-origin semiconductor equipment without individual export licenses. Future shipments to the Nanjing plant will now require case-by-case approvals, potentially slowing production timelines and complicating capacity expansions or technology upgrades. TSMC stated it is assessing the change and engaging with U.S. authorities to ensure uninterrupted operations at the site.

Washington has been systematically tightening export controls to limit China’s access to advanced chip technology. The revocation aligns with broader efforts to restrict foreign-owned facilities in China from bypassing licensing requirements. Similar actions have targeted South Korean peers, with their VEU authorizations set to lapse in four months. The Department of Commerce has not responded to requests for comment, though reports indicate a backlog of export license applications, exacerbating delays for critical equipment.

TSMC emphasized its commitment to maintaining Nanjing’s operations while navigating the regulatory shift. The move comes amid a mixed policy landscape, as recent Trump-era initiatives sought to ease some Biden-era restrictions on China, including approvals for advanced semiconductor sales. However, the latest revocations underscore continued strategic scrutiny of foreign manufacturing hubs in China.

Historical data indicates that similar regulatory adjustments have historically led to short-term volatility in TSMC’s stock, with price corrections averaging 1-2% in the immediate aftermath of policy announcements. Long-term resilience, however, has been supported by the company’s diversified client base and technological leadership.