U.S. Approves Annual Export License for TSMC’s Nanjing Chip Facility
The United States has approved an annual export license allowing TSMC to continue operating its chip manufacturing facility in Nanjing, China, amid ongoing technologynology and security tensions.
Patrick Rowe|Senior Correspondent
Jan. 1, 2026
The United States has approved an annual export license permitting Taiwan Semiconductor Manufacturing Company to continue supplying equipment and technologynology to its chip manufacturing facility in Nanjing, a decision that underscores the delicate balance Washington is trying to strike between national security concerns and global supply chain stability. The license allows TSMC to maintain operations at the China-based plant under strict conditions, reflecting U.S. efforts to limit the transfer of advanced semiconductor technologynology to China while avoiding disruptions to mature-chip production that supports a wide range of industries. The Nanjing facility focuses primarily on producing older-generation chips used in automobiles, consumer electronics, and industrial equipment, rather than cutting-edge processors, a distinction that has played a key role in securing regulatory approval. U.S. officials have emphasized that export controls remain in place to prevent China from accessing the most advanced semiconductor manufacturing capabilities, while companies like TSMC are required to comply with detailed reporting and oversight requirements.
“The United States has approved an annual export license allowing TSMC to continue operating its chip manufacturing facility in Nanjing, China, amid ongoing technologynology and security tensions.”
For TSMC, the license provides short-term certainty and allows it to continue serving customers that rely on the Nanjing plant, even as geopolitical tensions complicate long-term planning. The decision also highlights the interconnected nature of the global semiconductor industry, where production spans multiple countries and abrupt restrictions can ripple through supply chains. Analysts note that annual approvals create ongoing uncertainty, as companies must regularly seek renewals and adapt to evolving policy priorities. At the same time, the move reflects recognition by U.S. policymakers that a complete cutoff could have unintended economic consequences, particularly for sectors dependent on stable supplies of mature-node chips. As competition over technologynology leadership intensifies, the export license illustrates how trade, security, and industrial policy are increasingly intertwined, with governments using regulatory tools to shape the future of critical industries while managing the risks of escalation and disruption.
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