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The U.S. makes it harder for TSMC, SK Hynix and Samsung to produce chips in China

1. TSMC's VEU status revoked, impacting exports to its Nanjing facility. 2. SK Hynix and Samsung also lost VEU privileges on the same day. 3. Revoked VEU reflects U.S. tightening controls on chip exports to China. 4. TSMC's Nanjing fab contributes less than 3% to total revenue. 5. U.S. focuses on maintaining semiconductor production control amid competition.

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FAQ

Why Neutral?

The revocation of VEU status is unlikely to significantly impact TSMC's financials. Historically, similar policy shifts had limited market reaction if financial exposures were low.

How important is it?

Although the news reflects significant policy changes, TSMC's overall business model remains resilient. The minor financial dependency on the affected site mitigates long-term negative impacts.

Why Short Term?

Immediate effects may be felt in operational adjustments; however, TSMC’s limited revenue from Nanjing buffers long-term risks.

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