TSMC, the world’s largest semiconductor producer, is set to lose special export privileges granted by the US government concerning its Chinese operations beginning December 31. Under previous arrangements, TSMC enjoyed fast-tracked access to US chip manufacturing equipment for its Nanjing plant; however, these privileges will soon require official export licenses.

Although TSMC previously benefited from exemptions under the Trump administration’s export controls, the termination of such benefits poses operational challenges.

TSMC mentioned its commitment to ensuring uninterrupted operations at its Nanjing facility, which currently manufactures predominantly 16-nanometer chips and constitutes only 2.4% of the company’s total revenue. This adjustment is unlikely to impact TSMC significantly due to its massive market presence, making up around 70% of the foundry market share.

In recent news, both Samsung and SK Hynix have also had similar privileges revoked, sparking concerns that these moves could lead to rising hardware prices across the market. As recent developments unfold, the semiconductor landscape undergoes significant shifts amid tight regulatory scrutinies.