The United States has revoked the exemption granted to Taiwan Semiconductor Manufacturing Company (TSMC) for transferring critical equipment to its main chip manufacturing facility in China, potentially reducing the company’s production capabilities at the older-generation plant.

The company’s holdings of American Depositary Receipts (ADRs) listed in the U.S. fell by about 2.3% on Tuesday.

U.S. officials informed the Taiwanese company of their decision to terminate the “approved end-user” status that the company had benefited from for its Nanjing, China facility.

This move is part of a series of actions previously taken by the U.S. to revoke “end-user” designations for Chinese facilities owned by SK Hynix and Samsung, with exemptions expected to expire in about four months.

Washington’s step means that suppliers to TSMC will now need to apply for individual approvals when shipping semiconductor equipment and other items subject to U.S. export controls to the Nanjing facility, instead of the current blanket license granted due to the factory’s “end-user” status.