U.S. Allows TSMC to import chipmaking equipment to its China fabs — Samsung, SK hynix likewise receive go signal from Commerce Department

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The U.S. Is playing it safe when it comes to chipmaking tools entering China.

TSMC Logo
(Image credit: Getty / Bloomberg)

The U.S. Department of Commerce has issued a permit to Taiwan Semiconductor Manufacturing Company (TSMC) to import U.S.-made chip-making equipment into China for its Nanjing fab. According to Reuters, Samsung and SK hynix were also given import licenses to bring in specialized equipment that used American-made components into their Chinese factories. These three chipmakers used to enjoy validated end-user status, meaning they could freely import restricted items into China without asking for individual licenses. However, this privilege has expired at the end of 2025, meaning they now have to seek annual approval from Washington, D.C., to continue receiving advanced tools.

“The U.S. Department of Commerce has granted TSMC Nanjing an annual export license that allows U.S. Export-controlled items to be supplied to TSMC Nanjing without the need for individual vendor licenses,” the company said in a statement to Reuters. It also said that this “ensures uninterrupted fab operations and product deliveries.” This move to require annual licenses for the Chinese factories of these chipmakers is a part of the White House’s effort to keep advanced chipmaking tools out of China.

Beijing has been working hard to achieve “semiconductor sovereignty,” just as the U.S. Has been trying hard to prevent it from acquiring the latest chips. Aside from that, ASML, the only manufacturer of cutting-edge chipmaking tools, has been banned from exporting its products to China and servicing those that are already installed. Because of this, we’ve seen reports that the country is covertly working on reverse engineering EUV lithography tools, and that it has even come up with a “Frankenstein” EUV chipmaking tool, but has yet to produce a single chip.

Despite this, the East Asian nation is pushing hard to develop its own equipment. The central government has even told its chipmakers to use homegrown tools for half of new capacity. And while the country is still years behind cutting-edge tech from ASML and other Western companies, it’s slowly taking steps in the right direction.

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Jowi Morales
Jowi Morales
Contributing Writer
10 Comments Comment from the forums
  • Zaranthos
    So they're allowing them to export to China. TSMC is a Taiwan based company so they would be exporting to China not importing, but I guess you mean the fabs (in China) are importing but the headline wording could have been better.
    Reply
  • Gururu
    Zaranthos said:
    So they're allowing them to export to China. TSMC is a Taiwan based company so they would be exporting to China not importing, but I guess you mean the fabs (in China) are importing but the headline wording could have been better.
    Haha yes I had to read that a couple times to. Should read like: "TSMC fabs located in China allowed to import advanced equipment from Taiwan".
    Reply
  • SonoraTechnical
    So when it all falls apart then China just nationalizes those plants on the mainland and they have access to advanced node equipment without the uncomfortableness of actually invading Tiawan, no?
    The policies on this stuff is so up and down. One minute this tech can't be sold... Then there is a lunch, a press conference with the iluminata.. And then it can.. It never feels like any of it is really concerned with national security... It's just what are the moves that will ultimately benefit the technocrats that are presently in good standing with the US current regime and their rise to commercial domination.
    Reply
  • derekullo
    For how much animosity there is between them, I'm surprised Taiwan does business with China and vice versa.
    Reply
  • shady28
    SonoraTechnical said:
    So when it all falls apart then China just nationalizes those plants on the mainland and they have access to advanced node equipment without the uncomfortableness of actually invading Tiawan, no?
    The policies on this stuff is so up and down. One minute this tech can't be sold... Then there is a lunch, a press conference with the iluminata.. And then it can.. It never feels like any of it is really concerned with national security... It's just what are the moves that will ultimately benefit the technocrats that are presently in good standing with the US current regime and their rise to commercial domination.

    Maybe try reading the article before commenting?

    The most advanced equipment they are getting can do 16nm. China already has this capability indigenously.
    Reply
  • Edlaw0704
    Taiwanese are mostly Chinese nationalist parties, it’s like republican of China. Mainlanders are like democrats…. They are in real life buddies. It’s like northern Italian and Sicilians, having a party dispute but share the same history and heritage.
    Reply
  • Gururu
    derekullo said:
    For how much animosity there is between them, I'm surprised Taiwan does business with China and vice versa.
    China arguably has the biggest money pool in the world.
    Reply
  • retro77
    SonoraTechnical said:
    So when it all falls apart then China just nationalizes those plants on the mainland and they have access to advanced node equipment without the uncomfortableness of actually invading Tiawan, no?
    The policies on this stuff is so up and down. One minute this tech can't be sold... Then there is a lunch, a press conference with the iluminata.. And then it can.. It never feels like any of it is really concerned with national security... It's just what are the moves that will ultimately benefit the technocrats that are presently in good standing with the US current regime and their rise to commercial domination.
    You might have missed this part of the article:
    The U.S. Does not allow EUV lithography machines with U.S. Technology to be exported to China, even to companies like TSMC and Samsung that have Chinese factories. This means that these fabs are only limited to mature nodes of 16-nm and up.
    Meaning they wont have access to the really good stuff like 2nm and under.
    Reply
  • Shiznizzle
    SonoraTechnical said:
    So when it all falls apart then China just nationalizes those plants on the mainland and they have access to advanced node equipment without the uncomfortableness of actually invading Tiawan, no?
    The policies on this stuff is so up and down. One minute this tech can't be sold... Then there is a lunch, a press conference with the iluminata.. And then it can.. It never feels like any of it is really concerned with national security... It's just what are the moves that will ultimately benefit the technocrats that are presently in good standing with the US current regime and their rise to commercial domination.
    16nm tech. Quite old now considering we are approaching the release of 1.8 angstroms.

    In terms of time passed i would say at least 10 years. Alder Lake on intel side. So, like two gens ago. 2016 tech

    I still cant get my head around how much crap they pack into a small space. So many transistors packed into a square millimeter.

    However, a transistor is still a gate no matter the size, so if you just pack more of them onto a bigger space you can still compete, somewhat.
    Reply
  • SonoraTechnical
    Alright yall... I missed the 16nm piece... Just glanced over it... My bad...

    I still feel like none of this is ever about national security and that ultimately technocrats benefit... Sorry for not being one of the faithful...
    Reply