US Approves Annual License Allowing TSMC to Ship Chipmaking Equipment to China

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Focus on Mature Chip Technology

The Nanjing facility produces 16-nanometer and other mature-node semiconductors rather than TSMC’s most advanced chips. The company also operates a separate fabrication plant in Shanghai.

In its most recent annual report, TSMC disclosed that the Nanjing operation accounted for roughly 2.4 percent of total company revenue, highlighting its limited but strategic role within the company’s global manufacturing network.

Part of Broader US-China Tech Controls

The licensing decision reflects Washington’s ongoing effort to balance restrictions on advanced technology exports to China while allowing continued production of less-sensitive semiconductor components. U.S. export controls have increasingly focused on cutting-edge chips used in artificial intelligence and advanced computing, rather than mature technologies.

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TSMC said the license provides operational certainty for its China-based manufacturing activities as it continues to navigate evolving trade and technology regulations.