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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.
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. The revocation of the validated end-user status for the China-based fabs of these companies shows that Washington is tightening its grip on chipmaking machines, even older DUV tech, to make it difficult for Beijing to create its own technology.
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.
Trump Eyes Government Control of Quantum Computing Firms With Intel-Like Deals
Donald Trump is eyeing taking equity stakes in quantum computing firms in exchange for federal funding, The Wall Street Journal reported.
At least five companies are weighing whether allowing the government to become a shareholder would be worth it to snag funding that the Trump administration has "earmarked for promising technology companies," sources familiar with the potential deals told the WSJ.
IonQ, Rigetti Computing, and D-Wave Quantum are currently in talks with the government over potential funding agreements, with minimum awards of $10 million each, some sources said. Quantum Computing Inc. and Atom Computing are reportedly "considering similar arrangements," as are other companies in the sector, which is viewed as critical for scientific advancements and next-generation technologies.
No deals have been completed yet, sources said, and terms could change as quantum-computing firms weigh the potential risks of government influence over their operations.