TSMC Faces U.S. Export License Requirement for China Operations

Taiwan Semiconductor Manufacturing Company (TSMC) will lose its license-free export status for its Nanjing facility starting December 2025, requiring U.S. government approval for equipment shipments. The Nanjing plant produces chips for consumer electronics, and while the new rules add bureaucratic hurdles, TSMC maintains operations will continue uninterrupted.

Shares dipped 1% in New York trading following the announcement, though the company remains NEAR all-time highs amid robust demand for advanced semiconductors. TSMC's $100 billion U.S. expansion plan provides additional stability against regulatory headwinds.

Concurrently, TSMC is proactively removing Chinese-made tools from its newest fabrication lines to preempt potential future restrictions. This supply chain realignment reflects the semiconductor industry's growing geopolitical sensitivities as tech decoupling accelerates.