The U.S. government has granted an annual license to Taiwan Semiconductor Manufacturing to import U.S. chip manufacturing equipment to its facilities in Nanjing, China. The company told Reuters in a statement that the approval “ensures uninterrupted fab operations and product deliveries”.
Previously, the Asian companies benefited from exemptions from sweeping restrictions on chip imports to China, which were imposed as part of U.S. efforts to stay ahead of China in technological developments. Those privileges (known as validated end-user status), however expired on December 31, and the companies had to seek U.S. export licenses for 2026.
“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,” TSMC said in its statement. It added the license “ensures uninterrupted fab operations and product deliveries”.
The Nanjing plant manufactures 16-nanometre and other mature node chips – not TSMC’s most-advanced semiconductors. TSMC also has a chipmaking plant in Shanghai. TSMC had said in its 2024 annual report that its Nanjing site generated about 2.4% of its revenue.
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Similar import licenses were also granted to Samsung and SK Hynix, helping ensure that production at their China-based memory chip facilities, including DRAM and NAND manufacturing lines, can continue without disruption. These facilities are critical to global supply chains, supplying components for consumer electronics, data centers, and other high-demand technology sectors. Analysts note that a disruption in shipments of chipmaking equipment could have had ripple effects on global memory prices, supply stability, and downstream manufacturing.
According to industry observers, these annual licenses are a temporary measure rather than a long-term policy shift. It is uncertain whether such approvals will continue beyond 2026.
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The decision and the circumstances surrounding it showcases the complicated situation with the U.S. trying to balance export-control restrictions with practical business considerations. This can also be seen with the recent decision to allow the export of Nvidia’s H200 processors, its second-best artificial intelligence chips.
The Trump administration recently launched a review for this chip sale. The U.S. Commerce Department, which oversees export policy, has sent license applications for the chip sales to the State, Energy and Defense Departments for review.
The U.S. will be collecting a 25% fee on such sales, according to reports. However, Beijing is set to limit access to Nvidia’s advanced H200 chips despite the decision according to The Financial Times.