A TSMC logo is displayed on a wall in Hsinchu, Taiwan April 15, 2025. REUTERS/Ann Wang/ File Photo

By Karen Freifeld

(Reuters) -The U.S. has revoked Taiwan Semiconductor Manufacturing Co's authorization to ship key equipment to its main China facility, the chip manufacturer said on Tuesday.

The change removes a fast-track export privilege known as Validated End User (VEU) status, effective December 31, TSMC said, meaning future shipments of American chipmaking tools to TSMC's Nanjing site will require U.S. export licenses.

TSMC said it was evaluating the situation and communicating with the U.S. government, adding that it remains "committed to ensuring the uninterrupted operations of TSMC Nanjing."

The U.S. granted waivers to TSMC and other foreign chipmakers operating in China after issuing sweeping restrictions on chipmaking equipment to China in 2022.

The authorizations for Samsung and SK Hynix's China plants were revoked on Friday with an effective date 120 days later.

The revocations come despite a series of decisions by President Donald Trump to loosen export restrictions on technology, with his administration pledging to rescind Biden-era curbs on global access to AI chips in May and approving licenses last month to sell certain advanced semiconductors to China, including for Nvidia's H20 chips.

The Commerce Department said Friday that the U.S. planned to grant license applications to allow the foreign companies to operate their existing facilities in China, but not to expand capacity or upgrade technology.

It is unclear how quickly licenses may be approved, potentially slowing deliveries. Reuters last month reported on how thousands of export license applications have been held up, creating a backlog, including for chipmaking equipment.

In June, Reuters and other outlets reported that the U.S. was considering revoking the authorizations to the South Korean chipmakers as well as TSMC, making it harder for the foreign chipmakers to operate in China.

The U.S. Department of Commerce did not immediately respond to Reuters' request for comment.

(Reporting by Akash Sriram in Bengaluru; Editing by Shreya Biswas and Chizu Nomiyama )