The U.S. government has granted an annual licence to TSMC allowing it to import U.S.-made chip manufacturing equipment into its facilities in Nanjing, China, the company said on Thursday.
In a statement to Reuters, TSMC said the approval would “ensure uninterrupted fab operations and product deliveries.” The licence allows U.S. export-controlled equipment to be supplied to TSMC’s Nanjing operations without the need for individual vendor approvals.
South Korean chipmakers Samsung Electronics and SK Hynix have also received similar licences, according to industry sources. The move comes after earlier exemptions granted to Asian chipmakers under Washington’s export controls expired at the end of December.
Previously, companies such as TSMC, Samsung Electronics and SK Hynix had benefited from a special status known as “validated end-user,” which allowed them to continue shipping certain U.S. chip-related equipment to China despite broad restrictions aimed at limiting Beijing’s access to advanced semiconductor technologies. That status expired on December 31, forcing companies to apply for individual export licences for 2026.
TSMC clarified that the licence applies specifically to its Nanjing plant, which manufactures 16-nanometre and other mature-node chips rather than the company’s most advanced semiconductors. The Taiwanese chipmaker also operates a fabrication plant in Shanghai, but has not disclosed whether similar arrangements apply there.
According to TSMC’s 2024 annual report, the Nanjing facility accounted for about 2.4% of the company’s total revenue, highlighting its relatively modest but still strategically important role in TSMC’s global manufacturing network.
The decision underscores Washington’s attempt to balance strict controls on cutting-edge semiconductor technology with limited flexibility for mature-node production that supports global supply chains, even as geopolitical and technological competition with China continues to intensify.