TSMC said the firm is evaluating the situation and taking appropriate measures, including communicating with the U.S. government
In sum – what to know:
TSMC loses U.S. shipment license – From December 31, the firm’s Nanjing plant will need export licenses for chip equipment, potentially slowing deliveries.
Part of wider clampdown – The move follows Samsung and SK Hynix restrictions as Washington tightens controls on Chinese fabs.
Tech rivalry intensifies – The revocation highlights escalating U.S.-China competition in advanced semiconductors and growing risks to supply chains.
The U.S. government has revoked Taiwan Semiconductor Manufacturing Company’s (TSMC) license to freely ship equipment from the United States to China, a move set to take effect on December 31, according to international press reports.
The decision removes TSMC’s “validated end user” status and means that future shipments to its Nanjing facility will now require individual export licenses. The Chinese plant manufactures older-generation chips, while TSMC’s most advanced semiconductors are still produced in Taiwan and the U.S., according to the reports.
The revocation follows similar restrictions imposed by U.S. authorities on Samsung and SK Hynix last week, as Washington tightens controls on chip-making gear sent to China. The U.S. Bureau of Industry and Security has already stated it “does not intend to grant licenses to expand capacity or upgrade technology at fabs in China.”
In a statement, TSMC said: “While we are evaluating the situation and taking appropriate measures, including communicating with the U.S. government, we remain fully committed to ensuring the uninterrupted operation of TSMC Nanjing.”
The Biden administration had previously granted waivers to firms like TSMC in 2022, provided they disclosed key data. The current revocation signals a tougher stance, raising uncertainty over how quickly licenses will be processed and whether delays could disrupt production.
U.S. AI chipmaker Nvidia CEO Jensen Huang recently said there is a “real possibility” that the company’s advanced Blackwell processors could be sold in the Chinese market, as he pressed U.S. officials to allow American chipmakers more access to the market.
Speaking on Nvidia’s latest earnings call, Huang noted that China’s AI market could expand by 50% next year, estimating a $50 billion opportunity in 2025. “The opportunity for us to bring Blackwell to the China market is a real possibility,” Huang said. “We just have to keep advocating the importance of American tech companies to be able to lead and win the AI race, and help make the American tech stack the global standard.”
Huang’s remarks follow his visits to the White House in July and August to seek export licenses for Nvidia’s H20 chip, currently restricted by U.S. rules. In August, the Trump administration struck a deal allowing Nvidia to sell H20s in China, provided 15% of revenue goes to the U.S. government.
