The administration of US President Donald Trump has revoked Taiwanese chipmaker TSMC’s authorization to export American semiconductor equipment to China without a license, tightening restrictions on the sector’s access to US technology.

The decision ends the “validated end-user” (VEU) programme, which had allowed selected foreign manufacturers to ship US-origin technology licence-free for chip production in China.

“TSMC has received notification from the US Government that our VEU authorisation for TSMC Nanjing will be revoked effective December 31, 2025,” the company said on Tuesday. It added that it was evaluating the situation, while assuring it would maintain operations at the Nanjing plant.

TSMC is the world’s largest contract chipmaker, supplying companies such as Apple and Nvidia. Its most advanced manufacturing, however, remains in Taiwan, which Beijing claims as its territory.

Taiwan’s economic ministry stated that the move could reduce predictability for the Nanjing factory. Still, it emphasized that the facility accounts for only about 3% of TSMC’s overall capacity and a significantly smaller share of the island’s total production. “We estimate that this will not affect Taiwan’s overall industrial competitiveness,” the ministry said.

The US Commerce Department stated that former VEU participants would have 120 days from the publication of the rule to apply for export licenses. While approvals are expected for maintaining existing plants, Washington indicated it will not allow expansions or technology upgrades in China.