On January 6, 2026 the U.S. Commerce Department granted Taiwan Semiconductor Manufacturing Company (TSMC) a one‑year export license for its Nanjing Fab 16, allowing U.S.‑controlled semiconductor equipment to be shipped to the facility without case‑by‑case approvals.
The license replaces the validated end‑user (VEU) status that expired on December 31, 2025, and covers equipment needed for the fab’s mature‑node production, primarily 16‑nanometer and other legacy nodes. It does not authorize the import of advanced‑node tools that are subject to stricter U.S. export controls.
Nanjing Fab 16 contributes roughly 2.4 % of TSMC’s 2024 revenue and focuses on mature‑node chips that serve automotive, consumer electronics, and industrial markets. While the company’s global expansion strategy is centered on advanced nodes in Arizona, Kumamoto, and Dresden, the Nanjing facility remains a key revenue source for the Chinese market and a critical component of TSMC’s overall manufacturing footprint.
The approval reflects the U.S. government’s policy to keep China‑based fabs at least one generation behind U.S. and Taiwan competitors. By granting the license, the Commerce Department balances national‑security concerns with the need to avoid disrupting the supply of mature‑node chips that continue to meet global demand.
TSMC’s management said the license “ensures uninterrupted fab operations and product deliveries,” underscoring the company’s ability to navigate complex export‑control regulations while maintaining operational continuity in China. The license does not alter TSMC’s advanced‑node roadmap but provides stability for its mature‑node operations.
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