TSMC Secures Annual US Approval for Chip Tool Exports to China

• The annual license replaces the need for individual vendor licenses for U.S. export-controlled items, streamlining TSMC's supply chain for its Nanjing operations
• The approval was granted before the expiration of TSMC's existing Validated End-User (VEU) authorization, preventing potential disruptions to production and deliveries
• This move signals continued U.S. willingness to allow limited semiconductor cooperation with China despite broader export restrictions on advanced chip technology

TSMC Secures Annual US Export License for China Operations

Taiwan Semiconductor Manufacturing Company (TSMC) has received an annual export license from the U.S. Department of Commerce, allowing the company to import chip manufacturing equipment to its Nanjing, China facilities without requiring individual vendor licenses. The approval was granted before the December 31, 2025 expiration of TSMC's existing Validated End-User (VEU) authorization.

Key Details:

• License Type: Annual blanket export license for U.S. export-controlled items
• Facility: TSMC's fabrication plant in Nanjing, China
• Timing: Issued before the December 31, 2025 deadline
• Impact: Ensures continuous fab operations and product deliveries

Market Implications:

This development is significant for the semiconductor supply chain, as it allows TSMC to maintain operations at its China facility despite ongoing U.S.-China technology tensions. The annual license structure streamlines the approval process, eliminating the need for individual equipment export permits. This ensures TSMC can continue serving customers without disruption while navigating complex geopolitical dynamics.

The approval demonstrates a pragmatic approach by U.S. authorities in managing semiconductor export controls, recognizing TSMC's critical role in the global chip supply chain. For investors, this reduces operational uncertainty for TSMC's China operations and supports revenue stability from the facility. The move may also signal continued U.S. willingness to grant exceptions for established players like TSMC, even as broader restrictions on China's semiconductor sector remain in place.