The administration of President Donald Trump has revoked the authorization allowing Taiwan’s chipmaking giant TSMC to export U.S. chip-manufacturing equipment to China without a license, further restricting the country’s access to American technologies, AFP reported.

The move follows the U.S. Department of Commerce’s decision to end the “Validated End-User” (VEU) program, which had allowed selected foreign semiconductor manufacturers to export American technologies and goods to China without a license for chip production.

“TSMC received notice from the U.S. government that our VEU authorization for TSMC Nanjing will be revoked, effective December 31, 2025,” a spokesperson for Taiwan Semiconductor Manufacturing Company said. “While we assess the situation and take appropriate actions, including dialogue with the U.S. government, we remain fully committed to ensuring the continued operation of TSMC Nanjing,” the company added.

TSMC is the world’s largest contract chipmaker, producing chips used in everything from smartphones to missiles, with clients that include Nvidia and Apple. Its most advanced production, however, remains concentrated in Taiwan.

The Bureau of Industry and Security at the Department of Commerce said former participants in the VEU program will have 120 days after the new rule is published in the Federal Register to apply for and obtain export licenses. The agency said licenses will be issued to maintain existing factories in China, but not for “capacity expansion or technology upgrades.” | BGNES