Taiwan Semiconductor Manufacturing Corp. has received an annual license from the U.S. government, authorizing it to import American chipmaking equipment to its facility in Nanjing, China, Reuters reported Thursday.
“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,” said the company.
What Is the Purpose of TSMC’s Annual Import License?
The annual license helps TSMC conduct “uninterrupted fab operations,” enabling it to manufacture and deliver its products continuously. TSMC produces 16-nanometer and other mature node chips at its Nanjing plant, which generated approximately 2.4 percent of the company’s overall revenue, according to its 2024 annual report.
What Other Companies Were Granted Import Licenses?
Aside from TSMC, Samsung Electronics and SK Hynix of South Korea were also granted import licenses. These companies previously relied on “validated end-user status,” an exemption allowing certain exports to China despite restrictions on chip-related exports. With the expiration of the exemption on December 31, the companies were required to obtain export licenses for 2026.
TSMC’s Expansion Plans
In November 2024, the company, through its TSMC Arizona subsidiary, secured a potential $6.6 billion investment from the Department of Commerce for the construction of new semiconductor fabrication plants. It also received an additional $100 billion in funds in March 2025 for further expansion plans, including advanced packaging facilities and a research and development center.