US Revokes TSMC’s Authorisation to Export Advanced Tech to China

Taiwan Semiconductor Manufacturing Company (TSMC) says Washington has withdrawn its authorisation to freely ship advanced technology from the United States to China, a move that could disrupt its operations in the country.

The decision mirrors similar restrictions placed on South Korea’s Samsung and SK Hynix last week, limiting the transfer of American products to their Chinese factories.

In a statement to the BBC, TSMC said it was reviewing the development and would engage with US officials, stressing that it remains “fully committed to ensuring the uninterrupted operation” of its Nanjing facility. The company was informed that the authorisation would be revoked by the end of the year.

TSMC, the world’s largest semiconductor maker and a key supplier to firms like Nvidia, operates one plant in China, producing older-generation chips. Analysts suggest the financial impact may be limited, as the facility contributes only a small share of the company’s overall revenue.

The US has tightened restrictions on the export of advanced technology to China to protect its economic interests, though it had initially granted waivers to some global tech firms. Without blanket approvals, suppliers will now need individual licenses, potentially slowing and increasing the cost of shipments.

Analyst Raymond Woo of Kyoto University Innovation Capital noted that while Chinese customers may turn to domestic alternatives—often several generations behind—the shift could accelerate innovation as firms adapt existing equipment for less performance-sensitive products.

The US Commerce Department has yet to comment.