Washington has pulled Taiwan Semiconductor Manufacturing Company's (TSMC) authorisation to freely ship advanced technology from the US to China, the company said.
The block potentially disrupts the chip giant's manufacturing capabilities in China, which produces older-generation devices.
Washington made a similar move with South Korea's Samsung and SK Hynix last week, making it harder for the companies to ship American products for their Chinese factories.
TSMC told the BBC it was assessing the situation and would be in talks with the US government, adding it remains "fully committed to ensuring the uninterrupted operation" of its facility in China.
The chipmaker was notified by the US government that its authorisation to export advanced technology to China would be revoked by the end of the year.
