The United States government has issued an annual export license allowing Taiwan Semiconductor Manufacturing Company to continue importing U.S.-made chipmaking equipment into its facility in Nanjing, China.
The approval marks a shift from temporary exemptions to a more formal licensing arrangement following the expiry of previous privileges at the end of 2025.
TSMC confirmed the development in a statement, stressing that the licence removes uncertainty around supply access for its China-based operations.
“The U.S. Department of Commerce has granted TSMC Nanjing an annual export license that allows U.S. export-controlled items to be supplied to TSMC Nanjing without the need for individual vendor licenses,” the company said.
It added that the licence “ensures uninterrupted fab operations and product deliveries”.
Transition From Exemptions to Licences
For several years, major Asian semiconductor manufacturers operating in China benefited from exemptions under Washington’s export controls.
These exemptions, known as validated end-user status, allowed firms to receive restricted U.S. technology without applying for individual approvals.
That arrangement expired on December 31, forcing companies to seek export licences instead for operations continuing into 2026.
TSMC’s licence brings its Nanjing site into line with the new regulatory framework rather than relying on temporary waivers.
South Korea’s Samsung Electronics and SK Hynix have also secured similar annual approvals to maintain their manufacturing activities in China.
Scope of the Nanjing Facility
The Nanjing fab focuses on producing mature-node semiconductors rather than cutting-edge chips.
Its output includes 16-nanometre chips and other less advanced processes that remain widely used in automotive, industrial, and consumer electronics.
These products sit well below the technological threshold targeted by the strictest U.S. export controls.
TSMC also operates a separate semiconductor plant in Shanghai, reinforcing its manufacturing footprint within mainland China.
Revenue Exposure Remains Limited
While strategically important, the Nanjing operation represents a small portion of TSMC’s overall business.
In its 2024 annual report, the company disclosed that the facility generated approximately 2.4% of total revenue.
That relatively modest contribution reduces financial exposure while still allowing TSMC to serve existing customers in the region.
Maintaining continuity at the site remains critical for meeting long-term contractual obligations.
Balancing Geopolitics and Supply Chains
The licence reflects Washington’s ongoing effort to balance national security concerns with global supply chain stability.
Rather than forcing abrupt shutdowns, regulators appear focused on controlling technology flow while avoiding major disruptions.
For TSMC, the approval provides operational certainty at a time when semiconductor geopolitics remain volatile.
The company now enters 2026 with formal permission to continue its China operations under tighter but clearer oversight.
