According to the latest report coming from the U.S. government, it will revoke Taiwan Semiconductor Manufacturing Company’s (TSM) license-free status for its Nanjing site. Starting December 2025, the firm will need approval to ship U.S. tools to that plant. The site makes chips for phones and other devices. The firm says it will keep the site running and is now in talks with U.S. officials.
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This change does not stop TSMC from sending tools to China. Instead, it adds a step to the process. The firm must now apply for each shipment. This adds cost and time but helps the firm stay in line with policy.
Meanwhile, TSM shares fell 1% in New York after the news. Other chip toolmakers also saw drops. Still, the firm’s stock is near record highs this year. Demand for top-end chips remains strong, and the firm’s $100 billion plan to grow in the U.S. adds support.
TSMC Adjusts Supply Chain to Meet U.S. Rules
In a separate move, TSMC is making changes to stay in line with new U.S. rules. The firm is removing Chinese tools from its newest chip plants, tools that were used in earlier lines but are now being phased out. The goal is to reduce the risk tied to future limits on gear from China. The company aims to keep access to U.S. support and global sales.
At the same time, TSMC is reviewing all gear and materials used in its plants. This includes sites in Taiwan and Arizona. The move comes as U.S. lawmakers push for tighter rules on tech that could support China’s military. One proposal, called the Chip EQUIP Act, would block firms from using gear from certain foreign suppliers if they receive U.S. aid. That list includes Chinese firms. As rules shift, TSMC is working to stay ahead of the curve. The firm’s moves show how chipmakers now shape plans around policy as much as technology.
What Is TSM’s Stock Price Target?
On the Street, TSMC boasts a Strong Buy consensus rating. The average TSM stock price target stands at $267.13, implying a 16.96% upside from the current price.
