US approves annual license for TSMC to import its chipmaking tools to China

On January 1, 2026, the U.S. government granted TSMC (2330.TW) permission to continue importing American chipmaking equipment to its facilities in Nanjing, China.

The recent approval aims to ensure continuous operations and product deliveries.

The Asian companies have previously received dispensations from Washington’s sweeping limitations on chip-related exports to China, in line with the U.S. efforts to prevent China from making headway in technological advancement.

According to Reuters, prerogatives known as validated end- user status expired on December 31, and the companies had to seek U.S. export licenses for 2026 instead.

TSMC said in its statement: “The U.S. Department of Commerce has granted TSMC Nanjing an annual report license that allows items to be supplied without the need for individual vendor licenses.”

The recent statement further elucidates that the company maintains continuous production and product deliveries.

However, the Nanjing plant makes 16-nanometer and other trailing-edge chips-which are not TSMC’s most-advanced semi-conductors. 

According to the 2024 annual report, TSMC stated that its Nanjing site generated about 2.4% of its gross revenues.

The maintenance of equipment was permitted, but capacity expansion and technology upgrades were strictly banned.

Furthermore, the U.S. aims to ensure that China-based factories remain a generation behind the cutting-edge facilities in Taiwan, the U.S., and Japan.