The U.S. 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.

American officials recently informed TSMC of their decision to end what is called the Taiwanese chipmaker’s validated end user, or VEU, status for its Nanjing site. The action mirrors steps the U.S. took to revoke VEU designations for China facilities owned by Samsung Electronics and SK Hynix. The waivers are set to expire in about four months.

"TSMC has received notification from the U.S. government that our VEU authorization for TSMC Nanjing will be revoked effective Dec. 31, 2025,” the company said in a statement. "While we are evaluating the situation and taking appropriate measures, including communicating with the U.S. government, we remain fully committed to ensuring the uninterrupted operation of TSMC Nanjing.”