The United States has withdrawn authorization for Taiwan Semiconductor Manufacturing Company (TSMC) to freely ship advanced technology from the US to China, the chipmaker confirmed, in a move that underscores Washington’s escalating efforts to limit Beijing’s access to cutting-edge semiconductors.
The decision potentially complicates TSMC’s operations in China, where the firm runs a plant in Nanjing producing older-generation chips. The Taiwanese company told the BBC that it is currently assessing the implications of the move and will engage in discussions with US officials. Despite the setback, TSMC stressed it remains “fully committed to ensuring the uninterrupted operation” of its China-based facility.
The revocation, effective by the end of the year, comes on the heels of similar US actions against South Korean chipmakers Samsung Electronics and SK Hynix, both of which also operate factories in China. Last week, Washington informed the firms that their long-standing exemptions to export restrictions would no longer apply, making it harder for them to ship US-origin technology to their Chinese plants.
The US Commerce Department has not yet commented publicly on the decision.
TSMC, the world’s largest contract semiconductor manufacturer, produces chips for a broad range of global clients, including tech giants such as Nvidia. The company plays a central role in the global supply chain for advanced processors, which are vital for applications from smartphones and computers to artificial intelligence and military technologies.
The Biden administration has tightened restrictions first introduced under former President Donald Trump to curb China’s access to advanced chips and chip-making tools, citing national security concerns. While certain global chipmakers initially received waivers, Washington is now winding down those exemptions.
Analysts say the impact on TSMC is likely to be modest in financial terms. Its Nanjing facility manufactures 28-nanometer and other older-generation chips, which represent only a small fraction of the company’s total revenue. “The overall impact is limited as the China plant produces legacy chips, not the advanced nodes that drive TSMC’s profits,” said Raymond Woo of Kyoto University Innovation Capital.
However, the policy change adds complexity to logistics and supply chains. US suppliers will now need to apply for individual licenses to ship technology for use in Chinese factories, potentially slowing deliveries and raising costs.
Chinese companies could also be forced to lean more heavily on domestic suppliers, even if those technologies lag behind international standards. While this may hamper access to the latest chips, some analysts argue it could spur innovation as Chinese firms adapt existing equipment for industries where peak performance is less critical.
The development highlights the deepening technology rift between Washington and Beijing, as the US seeks to safeguard its edge in advanced semiconductors while China races to build up its own chipmaking capabilities.
