The US has revoked Taiwan Semiconductor Manufacturing Co.’s authorization to freely ship essential gear to its main Chinese chipmaking base, potentially curtailing its production capabilities at that older-generation facility.https://t.co/seiWHE3Eyk
— Mohammed Soliman (@ThisIsSoliman) September 2, 2025
The United States has revoked the fast-track export status for Taiwan Semiconductor Manufacturing Co Ltd’s (TSMC) main plant in Nanjing, China. This decision reflects growing concerns over technological exports to China. The Nanjing plant specializes in producing mature node chips, which are less advanced than the cutting-edge semiconductors crucial to many high-tech industries.
Analysts believe the revocation’s impact on TSMC will be minimal. “We are currently evaluating the situation and maintaining communication with the U.S. government,” TSMC said in a statement. “We remain committed to the uninterrupted operation of our Nanjing facility.”
This decision aligns with broad trajectory of US policy over last few years, but contrasts with Trump decision on Nvidia H20 and the related rationale of keeping China dependent on Western technology. Reflects current policy incoherence. https://t.co/olnC0FinmQ
— Scott Kennedy (@KennedyCSIS) September 1, 2025
“Trump administration is committed to closing export-control loopholes – particularly those that put US companies at a competitive disadvantage,” Jeffrey Kessler, Undersecretary of commerce @pstAsiatech This move in fact puts US firms at huge disadvantagehttps://t.co/RekZdZP16K
— Paul Triolo (@pstAsiatech) September 2, 2025
The decision mirrors similar actions against South Korean chipmakers, emphasizing the U.S. administration’s firm stance on controlling semiconductor technology exports to China.
SK Hynix and Samsung Electronics have also been affected by the new policies, making it more challenging for them to manufacture chips in China.
US tightens chip export controls
Jeffrey Kessler, under secretary of commerce for industry and security, emphasized that this move aims to close loopholes that have put U.S. companies at a competitive disadvantage.
The U.S. Department of Commerce’s Bureau of Industry and Security indicated that while it plans to approve export licenses for these companies to maintain existing facilities, it will not allow them to expand their capacity or upgrade their technology in China. Despite the restrictions, the financial impact on TSMC is expected to be minor since the Nanjing fab represents less than 3% of its total revenue. The move reflects a consistent U.S. strategy to prevent China from advancing its local chip production capabilities and technology know-how.
Taiwanese authorities have vowed to maintain close communication with both the U.S. government and TSMC to navigate this development. While the news saw shares in SK Hynix and Samsung decline following the revocation of their exemptions, TSMC shares remained relatively stable and traded flat on Wednesday. This policy shift reflects a re-examination of export controls perceived to be too lenient under the previous Biden administration, now being reinforced under the current government to curb China’s access to cutting-edge technology.
