The Trump administration has tightened export rules for TSMC’s operations in China, marking another big move in the ongoing U.S.–China technology battle. On September 2, 2025, Washington revoked Taiwan Semiconductor Manufacturing Company’s (TSMC) fast-track export status for its Nanjing factory. This decision forces the world’s largest chipmaker to apply for individual licenses before shipping U.S.-made equipment to its Chinese site.
This change is set to impact global chip supply, slow down TSMC’s work in China, and shift semiconductor investments further toward the United States.
Why Trump Tightened Export Rules for TSMC to China
The U.S. government has long been worried about China gaining access to advanced semiconductor technology. Previously, TSMC enjoyed a special status called Validated End User (VEU), which let it import American chipmaking tools into China without waiting for long approvals.
Now, with that status removed, every shipment must go through strict U.S. checks. The new rules will officially take effect on December 31, 2025, giving TSMC only a few months to prepare for delays.
This is part of Trump’s broader strategy to limit China’s tech growth while encouraging more chip production inside the U.S.
How This Impacts TSMC and China
TSMC, which makes chips for companies like Apple, Nvidia, and Qualcomm, plays a central role in the global tech supply chain. The Nanjing plant mostly produces mature chips rather than cutting-edge ones, but losing fast-track status will still hurt operations.
- Slower Equipment Delivery – Every new machine or repair tool will require a license.
- Production Uncertainty – The Nanjing plant could face slowdowns if approvals are delayed.
- Market Impact – After the news, TSMC’s stock dipped, and U.S. chip equipment makers like Applied Materials and Lam Research also saw pressure.
Boost for U.S. Chipmaking
While rules are getting tighter in China, TSMC is investing heavily in the U.S. The company recently confirmed plans to spend over $100 billion on new factories in Arizona and other U.S. states. This move not only secures TSMC’s future in America but also aligns with Trump’s goal of bringing manufacturing back home.
The export restrictions on China will likely accelerate TSMC’s U.S. expansion, ensuring advanced chipmaking happens on American soil.
Global Reactions
TSMC has acknowledged the U.S. decision and said it will “comply with regulations while keeping operations in China stable.” However, analysts say the move could push China to speed up its own semiconductor independence projects, further dividing the global chip industry.
Other Asian giants, like Samsung and SK Hynix, are also losing similar privileges in China, showing that the U.S. policy is targeting the whole industry, not just TSMC.
Conclusion
The new Trump export rules for TSMC to China highlight a turning point in the global semiconductor race. For TSMC, it means slower growth in China but faster expansion in the U.S. For the world, it signals more supply chain uncertainty, higher chipmaking costs, and a deeper divide between Western and Chinese tech industries.
As the December deadline approaches, all eyes will be on how TSMC balances its China operations while boosting U.S. production.
