The Trump administration has revoked Taiwan Semiconductor Manufacturing Company’s (TSMC) authorisation to export American chipmaking tools to China without a licence, in the latest move to curb Beijing’s access to advanced technology, the Financial Times reported.
TSMC confirmed Tuesday that its “validated end user” (VEU) authorisation for its Nanjing facility will be terminated effective December 31, 2025. “While we are evaluating the situation and taking appropriate measures, including communicating with the US government, we remain fully committed to ensuring the uninterrupted operation of TSMC Nanjing,” the company said in a statement.
The revocation follows similar actions last week against Samsung and SK Hynix, whose memory chip plants in China also lost their VEU status. Intel has likewise been affected, though it had already sold its China memory-chip unit to SK Hynix earlier this year.
While the move does not outright ban TSMC from shipping US chipmaking tools to China, it means future exports will require Commerce Department approval, giving Washington tighter oversight. Officials have said licences will not be granted if they are intended to “expand capacity or upgrade technology at fabs in China.”
TSMC operates a large facility in Nanjing that produces chips for consumer electronics and industrial use, and another in Shanghai using older-generation technology. Its most advanced chips, including those used in Nvidia’s AI processors, are produced in Taiwan and the US, and are already barred from export to mainland China under existing controls.
Shares in TSMC fell around 2% Tuesday amid a broader tech stock decline. US toolmakers KLA, Applied Materials, and Lam Research also dropped on the news. Samsung and SK Hynix shares declined in Seoul.
The development comes as Washington and Beijing continue trade talks ahead of a possible meeting later this year between President Donald Trump and President Xi Jinping. The Trump administration has so far avoided sweeping new export restrictions in an effort not to derail negotiations.
China, meanwhile, is pushing to triple its production of artificial intelligence processors next year, according to an earlier FT report, underscoring its determination to gain ground in the global race for AI dominance.
