The United States has revoked Taiwan Semiconductor Manufacturing Company’s (TSMC) license to ship advanced technology from the US to China, the company confirmed.
The move could complicate operations at TSMC’s facility in China, which makes older-generation chips. Washington issued similar restrictions on South Korea’s Samsung and SK Hynix last week, making it harder for them to send US-made products to their Chinese factories.
TSMC told the BBC it is reviewing the decision and plans to discuss it with the US government, saying it remains “fully committed to ensuring the uninterrupted operation” of its China plant. The company was informed its license will expire by the end of the year.
The US Commerce Department has not yet commented.
TSMC is the world’s largest chipmaker, supplying semiconductors for everything from smartphones to AI systems, and counts Nvidia among its biggest customers.
Washington has tightened export rules in recent years to limit China’s access to cutting-edge technology, arguing it’s a matter of economic and national security. Some firms were given waivers, but the latest decision suggests the US is stepping up pressure.
The change could delay shipments since suppliers will now need individual approvals, which could add costs and red tape, according to Raymond Woo, an investment specialist at Kyoto University Innovation Capital.
Chinese companies may be forced to lean on domestic alternatives that are less advanced, Woo said, though this could also drive local innovation as firms push older equipment to its limits.
For TSMC, the immediate financial hit may be small. Its Nanjing facility makes older chips that account for only a minor share of overall revenue, Woo added.
