Taiwan’s TSMC gets U.S. green light to continue operations in China as semiconductor rules tighten

TAIWAN: Taiwan Semiconductor Manufacturing Co. (TSMC) has secured an important annual license from the U.S. government, allowing it to bring American chipmaking equipment into its Nanjing, China, factories, the company said Thursday.

For TSMC, the approval is a welcome relief. The company emphasised that the license ensures its factories can keep running smoothly and continue delivering products on time. South Korea’s Samsung Electronics and SK Hynix have also received similar permissions.

Until recently, these tech giants benefited from special exemptions that let them bypass some of Washington’s strict rules on selling chip technology to China—a key move in the U.S.’s effort to stay ahead in tech. Those exemptions expired on Dec 31, meaning the companies now have to get new 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,” the company said.

The Nanjing plant mainly produces older-generation chips, like 16-nanometer models, rather than TSMC’s most advanced semiconductors. TSMC also runs a plant in Shanghai. In 2024, the Nanjing site accounted for about 2.4% of the company’s total revenue.

The new license highlights how U.S. suppliers and Asian chipmakers are finding ways to keep the global semiconductor supply chain running smoothly—even amid rising geopolitical tensions.