In a significant development for the global semiconductor industry, the United States government has issued an annual licence to Taiwan Semiconductor Manufacturing Company (TSMC). This authorization permits the world's leading chipmaker to import American semiconductor manufacturing equipment to its fabrication plant located in Nanjing, China.
US Green Light for Continued Operations in China
According to a statement provided by TSMC to the Reuters news agency, the U.S. Department of Commerce has granted TSMC Nanjing an annual export license. This crucial approval allows U.S. export-controlled items to be supplied to the Nanjing facility without the need for individual vendor licenses for each piece of equipment.
The company emphasized that this licence "ensures uninterrupted fab operations and product deliveries" from its Chinese plant. This move comes after previous privileges, known as validated end-user status, which had exempted TSMC from certain Trump-era export restrictions, lapsed on December 31, 2025.
Those earlier restrictions were part of a broader U.S. strategy to maintain a technological edge over China. Following the expiry, TSMC, along with South Korean giants Samsung Electronics and SK Hynix—who have also reportedly received similar import licences—had to apply for new U.S. export approvals to continue their advanced manufacturing activities in China.
TSMC Hits Major Milestone with 2nm Chip Production
In a parallel breakthrough, TSMC has announced the commencement of mass production of its 2-nanometer (nm) chips. This marks a pivotal leap forward in semiconductor technology, positioning TSMC at the forefront of chip manufacturing.
The new 2nm process node is TSMC's most advanced technology to date, succeeding the previous 3nm generation. The key advantages of these chips include:
- Higher performance compared to 3nm chipsets.
- Significantly lower power consumption, making them ideal for battery-dependent mobile devices and energy-intensive artificial intelligence (AI) workloads.
- A smaller transistor size that enables greater computing power to be packed into more compact device designs.
The company confirmed that production has officially started at its facilities in Hsinchu and Baoshan in Taiwan. TSMC has outlined plans to ramp up production capacity throughout the coming year to meet anticipated global demand.
Strategic Implications for the Tech Landscape
The combination of these two events underscores the complex, interconnected nature of the global tech supply chain. The U.S. licence provides stability for TSMC's existing operations in China, which serve a vast consumer and industrial market. Simultaneously, the launch of 2nm production in Taiwan solidifies TSMC's technological leadership, which is critical for next-generation innovations in smartphones, high-performance computing, and AI.
For industries and consumers worldwide, especially in tech-heavy markets like India, these developments signal the ongoing acceleration of computing power and efficiency. The advancement towards more powerful and energy-efficient chips promises to fuel progress in everything from consumer electronics to national AI ambitions.
