TSMC Get US Approval For Chipmaking Tools Exports to China

The United States government has granted Taiwan Semiconductor Manufacturing Company (TSMC) an annual licence to export U.S.-made chipmaking equipment to its fabrication facility in Nanjing, China, ensuring that the plant’s operations and deliveries remain uninterrupted. This approval, covering the calendar year 2026, replaces a previous system under which TSMC and other foreign companies operated under a more general exemptions regime that expired on December 31, 2025.

Under the new licensing framework, the U.S. Department of Commerce will issue export licences that allow American-origin semiconductor manufacturing tools to be supplied to TSMC’s Nanjing site without requiring individual vendor permits for each shipment. According to the company, this move will help maintain production continuity at the Nanjing fab, which primarily focuses on mature node chips such as 16-nanometre components rather than cutting-edge semiconductors. The factory contributes a modest but meaningful share of TSMC’s overall revenue.

The annual licence system has also been extended to other major chipmakers, with Samsung Electronics and SK Hynix receiving similar export approvals for their Chinese operations. These licences allow South Korean firms to import essential chipmaking equipment into their facilities in China under the new regulatory regime. 

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This comes after the Chinese government urged companies and government institutions to start manufacturing advanced chips in-house. Moreover, this development could enable China to acquire advanced manufacturing tools and develop competitive chips to flood global markets.