The US government has revoked the “Verified End User” (VEU) status of TSMC’s Nanjing plant, signaling another tightening measure in the ongoing semiconductor trade restrictions. At the same time, Chinese chipmakers are accelerating domestic innovation, unveiling breakthroughs in GPUs and high-speed ADCs, narrowing the gap with international competitors.
US Revokes VEU Status for TSMC Nanjing #
According to reports, US officials informed TSMC that its VEU status for the Nanjing factory will end on December 31, 2025.
- What It Means: TSMC will now require export licenses for shipping US-made semiconductor equipment to its Nanjing operations.
- Previous Advantage: Under VEU status, TSMC enjoyed streamlined approvals for equipment imports, reducing regulatory delays.
- Company Response: TSMC confirmed the revocation and stated:
“We remain fully committed to ensuring the uninterrupted operation of our Nanjing factory and are in communication with the US government.”
Background on TSMC Nanjing #
- Established: Production began in 2018.
- Technology Focus: Initially supported 16nm and 12nm processes, later expanded to 28nm/22nm for automotive and specialty chips.
- Capacity: Recently expanded to 20,000 wafers/month for 16nm/12nm and 40,000 wafers/month for 28nm/22nm.
- Revenue Contribution: Accounts for a relatively small portion of TSMC’s total business.
This revocation aligns with similar actions against Samsung’s factories in China, as the US continues to tighten semiconductor export controls.
Domestic Breakthroughs in China’s Semiconductor Industry #
While foreign restrictions mount, Chinese chipmakers are pressing forward with independent innovations. Recent announcements highlight advances in GPUs and RF ADCs, key technologies for AI, communications, and defense applications.
Lisuancore 7G100 Series GPU #
East-China Micro (Dongxin Corp.), a major shareholder in Lisuancore Technology, confirmed that the 7G100 GPU series has entered the sampling phase with customers.
- Process Technology: Built on a 6nm node with proprietary core design and instruction set.
- Performance: Benchmarks reportedly show it outperforming NVIDIA’s RTX 4060.
- Capabilities: Supports single-precision FP32, half-precision FP16, and INT8 operations, enabling both graphics rendering and AI acceleration.
- Launch Timeline: Expected to hit the market in Q4 2025.
- Target Applications: Endpoint devices, cloud computing, and edge AI workloads.
This marks a milestone for China’s domestic GPU ecosystem, showing competitiveness in both gaming and AI markets.
Chengdu Huaray’s Breakthrough in High-Speed RF ADCs #
In parallel, Chengdu Huaray announced the successful launch of its HWD12B16GA4 RF direct-sampling ADC, sending its stock price soaring to the 20% daily limit.
- Specifications:
- 4-channel, 12-bit, 16GSPS high-speed ADC
- Supports direct RF sampling in the KU band
- Designed with full IP ownership and independent forward design
- Key Innovations:
- Multi-channel RF direct-sampling ADC architecture
- High-linearity amplifiers
- Low-jitter clock systems
- Applications: Radar, commercial satellites, electronic countermeasures, high-end instrumentation, drones, and wireless communications.
- Supply Chain Independence: Entire fabrication and packaging rely on domestic foundries, ensuring a secure and controllable supply chain.
Industry experts hailed this as a major breakthrough, citing that the chip’s performance is comparable to leading international ADCs, giving China a rare technological edge.
Implications for the Global Semiconductor Landscape #
- For TSMC: The revocation of VEU status adds complexity to its China operations, though its global revenue impact is limited.
- For China’s Domestic Players: Companies like Lisuancore and Chengdu Huaray are closing performance gaps, showcasing China’s growing ability to design competitive chips without foreign reliance.
- For Global Competition: As the US tightens restrictions, domestic breakthroughs in China could accelerate self-sufficiency and alter the balance of the global semiconductor supply chain.
Conclusion #
The revocation of TSMC’s Nanjing plant exemption reflects the escalating US-China semiconductor tensions. Yet, at the same time, breakthroughs in domestic GPUs and high-speed ADCs demonstrate China’s determination to build an independent semiconductor ecosystem.
As 2026 approaches, the global industry will watch closely to see whether these homegrown technologies can scale and compete internationally, potentially reshaping the semiconductor landscape.