SEOUL, Jan 2, 2026, 10:52 ET
- U.S. grants TSMC an annual licence covering shipments of U.S.-controlled chipmaking equipment to its Nanjing, China facility for 2026
- The move follows the Dec. 31 expiry of “validated end-user” waivers that had eased approvals for major Asian chipmakers’ China fabs
- TSMC says its Nanjing fab makes 16-nanometre and other mature-node chips and generated about 2.4% of revenue in 2024
The United States has granted Taiwan Semiconductor Manufacturing Co (TSMC) an annual licence allowing shipments of U.S.-controlled chipmaking equipment to its facilities in Nanjing, China, the company said. 1
The decision matters because the carve-outs that had let selected foreign chipmakers move certain American tools into China without case-by-case permissions expired on Dec. 31. The companies had to secure new authorisations for 2026 to avoid delays in equipment needed to keep factories running.
The annual licence also signals a shift in how Washington is policing tool flows into China-linked semiconductor production. Instead of broad exemptions, key recipients now operate under time-limited approvals that can be revisited each year.
TSMC said the U.S. Department of Commerce granted its Nanjing unit an annual export licence that allows U.S. export-controlled items to be supplied without the need for individual vendor licences. The company said the approval would keep factory operations and product deliveries running without interruption.
Samsung Electronics and SK Hynix have also received similar import licences, according to the company’s account of the U.S. process. The three companies had previously benefited from exemptions tied to their “validated end-user” status.
TSMC’s Nanjing plant makes 16-nanometre and other mature-node chips, the company said. Mature-node production refers to older-generation manufacturing that is widely used for everyday electronics rather than the most advanced processors.
The Nanjing output is not among TSMC’s most advanced semiconductors, the company said. TSMC also operates a chipmaking plant in Shanghai.
In its 2024 annual report, TSMC said its Nanjing site generated about 2.4% of overall revenue. The figure underscores that the China operations are a smaller part of the company’s business, even as they remain strategically sensitive.
Validated end-user status is a U.S. Commerce Department program that allows approved facilities to receive certain export-controlled items without applying for a separate licence for each shipment. With that authorisation expiring at the end of 2025, chipmakers shifted to export licences for 2026.
The U.S. approval comes as investors focus on TSMC’s near-term outlook and supply-chain visibility. In Taipei, TSMC shares rose 2.26% on Friday, helping push Taiwan’s benchmark Taiex index to a record close, Taiwan’s Central News Agency reported.
“Foreign investors just rebuilt their positions with TSMC as their top target,” said Kerry Huang, an analyst at Concord Securities. 2
