Taiwan Semiconductor Manufacturing Co. (TSMC) said on Thursday that the U.S. Department of Commerce has granted its Nanjing subsidiary an annual export licence covering U.S.-controlled semiconductor manufacturing equipment. The licence allows suppliers to ship tools and related items without applying for separate, case-by-case approvals.
In a statement to Reuters, TSMC said the approval “ensures uninterrupted fab operations and product deliveries,” signalling continuity for customers despite tighter U.S. controls on technology flows to China.
The move follows the expiration on December 31 of so-called validated end-user status, a special exemption that had allowed certain foreign chipmakers operating in China to import U.S. equipment more freely. That status was withdrawn as part of Washington’s broader effort to curb China’s access to advanced semiconductor technologies and protect U.S. leadership in the sector, forcing companies to seek formal export licences for 2026 and beyond.
South Korea’s Samsung Electronics and memory chipmaker SK Hynix have also received similar annual licences, according to earlier disclosures, allowing them to maintain operations at their China-based facilities under the new rules.
TSMC emphasized that the licence applies to its Nanjing plant, which focuses on producing 16-nanometre and other mature-node chips rather than the company’s most advanced semiconductors. The Taiwanese chipmaker also operates a separate fabrication facility in Shanghai.
According to TSMC’s 2024 annual report, the Nanjing site accounted for about 2.4% of the company’s total revenue, underscoring its relatively modest but still meaningful role in the firm’s global manufacturing footprint.
The approvals suggest that while U.S. export controls remain stringent, Washington is opting for a managed approach that allows established foreign manufacturers to continue limited, non-leading-edge production in China under close oversight.