Why Is TSM Stock Surging Premarket? U.S. Approves China Equipment License

Taiwan Semiconductor Manufacturing Company Limited (TSM) shares surged 2.74% in premarket trading on January 2, 2026, reaching $312.25 at 7:16 AM EST, following positive regulatory news from the United States. The world’s largest contract chipmaker announced that the U.S. Department of Commerce has granted it an annual export license to import American chipmaking equipment to its Nanjing, China facility.

This development removes a significant regulatory uncertainty that had been weighing on investor sentiment as the company’s previous “validated end-user” exemption status expired on December 31, 2025. The license ensures TSMC can continue uninterrupted operations at its Chinese manufacturing plant, which produces mature-node semiconductors.

U.S. License Approval Brings Operational Certainty

The newly granted annual export license allows TSMC to import U.S. export-controlled chipmaking equipment to its Nanjing facility without requiring individual vendor licenses for each transaction. This replaces the previous validated end-user status that had provided broad exemptions from U.S. chip export restrictions but expired at the end of 2025.

TSMC stated that the license “ensures uninterrupted fab operations and product deliveries,” addressing near-term operational concerns that had created uncertainty among investors.

The Nanjing plant manufactures 16-nanometer and other mature-node semiconductors, which are widely used in consumer and industrial electronics. While this facility accounts for just 2.4% of TSMC’s total revenue according to its 2024 annual report, securing regulatory approval was viewed as critical for maintaining operational stability in China.

South Korea’s Samsung Electronics and SK Hynix have also received similar import licenses, highlighting broader efforts to stabilize semiconductor supply chains amid ongoing U.S.-China technological tensions.

Join our Telegram group and never miss a breaking digital asset story.

H200 Chip Discussions Reinforce AI Market Momentum

Beyond the license approval, investors are closely monitoring discussions between TSMC and Nvidia regarding expanded production of H200 AI chips for the Chinese market. Sources indicate that Chinese technology companies have already placed orders for over 2 million H200 units in 2026, while Nvidia currently maintains approximately 700,000 units in inventory.

Production of the H200, which relies on TSMC’s advanced 4-nanometer manufacturing process, is expected to ramp up in the second quarter of 2026.

These developments underscore the strong global demand for AI-focused semiconductors and reinforce TSMC’s position as a critical supplier to leading technology firms. Market analysts note that tight supply chains for advanced AI chips could continue supporting pricing power and margin expansion for leading foundries.

However, regulatory risks remain, as Chinese authorities have not yet approved shipments of Nvidia H200 chips despite recent U.S. policy adjustments that permit exports with a 25% tariff. Investors now await TSMC’s fourth-quarter 2025 earnings report scheduled for January 15, 2026, which is expected to provide further insight into how AI chip demand and regulatory developments are influencing revenue forecasts and production plans.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.