Semiconductor Industry Developments - Sept. 2/2025
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U.S. revokes TSMC’s VEU export waiver: The U.S. Commerce Department notified Taiwan Semiconductor Manufacturing Company (TSMC) that its “validated end user” (VEU) status — a waiver that allowed the company to ship U.S.‑made chip‑manufacturing tools to its Nanjing, China fab without individual export licenses — will be withdrawn as of December 31 reuters.com. Once this fast‑track privilege ends, TSMC and its American suppliers must obtain individual licenses for each shipment tomshardware.com. The move extends the U.S. policy of tightening export controls on chip‑making equipment and follows similar revocations for Samsung and SK Hynix reuters.com. TSMC said it is evaluating the situation and remains committed to ensuring uninterrupted operations at its Nanjing fab reuters.com.
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Political backdrop and market reaction: The revocations come despite President Donald Trump’s recent pledges to loosen some Biden‑era technology export curbs, including approving certain AI‑chip sales to China reuters.com. U.S. officials say licenses may still be granted, but the case‑by‑case approval process could slow deliveries reuters.com. News of the revoked waiver contributed to a drop in TSMC’s share price; the stock fell roughly 2 % early Tuesday before stabilizing forbes.com. Forbes notes that suppliers will now need export licenses for every shipment of tools, parts or chemicals destined for the Nanjing facility forbes.com, and TSMC confirmed it is taking “appropriate measures” and communicating with the U.S. government forbes.com. Tom’s Hardware adds that the change will require U.S. toolmakers such as Applied Materials, KLA and LAM Research to submit separate export applications, which could disrupt operations if approvals are delayed tomshardware.com.
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Context of prior revocations: Earlier waivers for Samsung, SK Hynix and Intel were revoked in late August, leaving those companies with roughly four months to secure export licenses for their China‑based fabs. Tom’s Hardware notes that the loss of waivers puts Samsung and SK Hynix’s major memory‑chip facilities in China at risk of supply disruptions tomshardware.com, while Intel’s remaining assembly and test operations there also face uncertainty tomshardware.com. Analysts warn that without reliable U.S. tool shipments, foreign chipmakers may shift more production out of China tomshardware.com.
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U.S. market impacts: Markets opened lower on Tuesday, with the tech‑heavy Nasdaq Composite falling 1.2 %. Zacks Investment Research (via Nasdaq) reports that shares of Marvell Technology — an AI‑focused fabless semiconductor firm — plunged 18.6 % after its fiscal‑second‑quarter revenue missed estimates nasdaq.com, contributing to broader weakness in technology stocks. Investors remain sensitive to earnings disappointments and supply‑chain disruptions in the chip sector.
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AI campus seeks U.S. chip suppliers: In other news, Abu Dhabi‑backed technology group G42 is looking beyond Nvidia for chips powering its planned UAE‑U.S. AI campus. Reuters cites sources saying G42 is negotiating with American cloud firms such as Amazon Web Services, Microsoft, Meta and Google and considering AMD, Cerebras Systems and Qualcomm as alternative chip suppliers reuters.com. The plan underscores a global push to diversify AI‑chip supply as export controls tighten, and it follows deals announced during Trump’s May visit to the United Arab Emirates reuters.com.
Outlook
The revocation of TSMC’s VEU status signals the Trump administration’s continued focus on curbing China’s access to advanced semiconductor tools, even as it selectively relaxes other technology restrictions. U.S. companies supplying equipment to Chinese fabs now face additional licensing hurdles, and chipmakers may accelerate efforts to localize equipment or relocate production. Markets are likely to remain volatile as policy uncertainty and earnings misses (such as Marvell’s) weigh on investor sentiment.
Sources
Reuters – US revokes TSMC’s fast‑track China export status as controls tighten reuters.comreuters.com.
Tom’s Hardware – U.S. gov’t revokes TSMC’s authorization to ship tools to its fabs in China tomshardware.com.
Forbes – Chip Giant TSMC Shares Drop 2% After US Revokes Waiver for China Shipments forbes.comforbes.com.
Asia Financial – US Ends Chip Waiver for TSMC to Supply Its Chinese Fabs asiafinancial.comasiafinancial.com.
Tom’s Hardware – Intel, Samsung, and SK Hynix hit by another abrupt US policy change tomshardware.comtomshardware.com.
Reuters – Abu Dhabi‑backed G42 aims to diversify chip suppliers for AI campus reuters.com.
Nasdaq/Zacks – Stock Market News for Sep 2, 2025 nasdaq.com.