TLDRs;
- TSMC shares rise after U.S. approves licence for China chipmaking operations.
- Nvidia approaches TSMC to expand H200 AI-chip production for Chinese technology firms.
- Licence ensures uninterrupted operations at TSMC’s Nanjing plant amid regulatory clarity.
- Investors await TSMC’s Q4 2025 earnings as AI-chip demand boosts market focus.
Taiwan Semiconductor Manufacturing Company (TSMC) saw its U.S.-listed shares rise in premarket trading after the company announced it had secured a crucial U.S. licence for its Nanjing, China, fabrication facility.
TSMC’s shares closed up 1.4% at $303.89 on Thursday, reflecting renewed investor confidence as regulatory uncertainties around China operations eased.
The newly granted licence permits TSMC to import American chipmaking equipment for its Nanjing plant without needing separate approvals from individual vendors. This annual export licence replaces the previous “validated end-user” status, which had provided broad exemptions from U.S. chip export restrictions but expired at the end of 2025.
TSMC stated that the licence will “ensure uninterrupted fab operations and product deliveries,” alleviating near-term operational concerns.
Taiwan Semiconductor Manufacturing Company Limited, TSM
Nvidia H200 Talks Drive Market Attention
Investors are also closely monitoring discussions between TSMC and Nvidia, as the chipmaker looks to ramp up production of H200 AI chips for the Chinese market.
Sources indicate that Chinese companies have already placed orders for over 2 million H200 units in 2026, while Nvidia has approximately 700,000 units in inventory. Production of the H200, which relies on TSMC’s advanced 4-nanometre process, is expected to expand in the second quarter of the year.
These developments highlight the strong demand for AI-focused semiconductors, reinforcing TSMC’s role as a key supplier to global technology firms. Market analysts note that tight supply chains for advanced AI chips could continue to support pricing and boost margins for leading foundries.
Regulatory Clarity Eases Investor Concerns
U.S. export controls on chipmaking technology have been a significant factor for companies with China operations.
TSMC’s new licence removes uncertainty around importing essential equipment for its Nanjing facility, which produces 16-nanometre and other “mature-node” semiconductors, technologies widely used in consumer and industrial electronics. Although the Nanjing plant accounts for just 2.4% of TSMC’s total revenue, securing the licence is viewed as a positive signal for operational stability.
South Korea’s Samsung Electronics and SK Hynix have also received similar licences, highlighting broader efforts to stabilize semiconductor supply chains amid geopolitical tensions. However, regulatory risk remains, as Chinese authorities have yet to approve shipments of Nvidia H200 chips despite recent U.S. policy reversals that allow exports with a 25% fee.
Market Sentiment and Upcoming Earnings
The broader semiconductor sector saw mixed performance in the last session, with the VanEck Semiconductor ETF down 0.9% and the iShares Semiconductor ETF declining 1.2%. Analysts say that AI sentiment, interest rate expectations, and supply-chain developments will likely continue to drive volatility in growth-oriented tech stocks.
Investors are now turning their attention to TSMC’s fourth-quarter 2025 earnings report, scheduled for January 15, 2026. The company has entered a “quiet period” from January 5 to January 14, during which it limits communication with investors ahead of its results. Analysts expect the report to provide further insight into how AI chip demand and regulatory developments are influencing revenue and production forecasts.
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