The United States has reportedly granted Taiwan Semiconductor Manufacturing Company (TSMC) an annual licence to import U.S.-made semiconductor manufacturing equipment into its factory in Nanjing, China.
TSMC said the licence from the Department of Commerce would allow U.S. export-controlled equipment to be supplied to its Nanjing facility without individual approvals from vendors, according to a Reuters report.
"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," TSMC said in a statement to Reuters.
The licence "ensures uninterrupted fab operations and product deliveries".
South Korea's Samsung Electronics and SK Hynix have also received similar import licences.
The U.S. Government has been tightening controls on chip-related exports to China as part of broader efforts to limit Beijing’s access to advanced semiconductor technology.
Prior to that major Asian chipmakers operating in China including TSMC, Samsung Electronics and SK Hynix benefited from exemptions known as validated end-user (VEU) status allowing them to receive some U.S. equipment without licences for each shipment.
The Nanjing plant makes 16-nanometre and other mature node chips, which are not TSMC's most-advanced semiconductors, and generated about 2.4% of its revenue.
The licence was seen as balancing restricting China’s access to cutting-edge chip technology and avoiding shortages in industries that rely heavily on such chips.
