TSMC faces curbs on shipping US tech to China

The United States has revoked Taiwan Semiconductor Manufacturing Company’s licence to ship advanced technology from America to China. The decision follows similar restrictions on South Korean firms Samsung and SK Hynix, increasing uncertainty for chipmakers operating Chinese facilities.

TSMC confirmed that Washington has notified that its authorisation will expire by the end of the year. The company said it would discuss the matter with the US government and stressed its commitment to keeping operations in China running without disruption.

The curbs are part of broader US measures to limit China’s access to advanced semiconductors. While they could complicate shipments and force suppliers to seek individual approvals, analysts suggest the direct impact on TSMC will be limited, as its sole Chinese plant in Nanjing makes older-generation chips that contribute only a small share of revenue.

Chinese customers may increasingly turn to domestic chipmakers, even if their technology lags. Such a shift could spur innovation in less performance-critical areas, while global suppliers grapple with higher costs and regulatory hurdles.

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