The world’s largest semiconductor maker, Taiwan Semiconductor Manufacturing Company, will pause shipments of its most advanced computer chips to China in response to concerns from US regulators. The move follows the discovery of its products in devices made by Huawei, a Chinese telecom giant currently under US sanctions.
By some estimates, TSMC produces over 90% of the world’s most advanced computer chips (see overview), which power everything from the latest smartphones to AI applications. Many technology companies—including Apple, Nvidia, Qualcomm, and more—outsource production of these critical components to TSMC. Analysts say the restrictions could impact a wide range of nonsanctioned Chinese companies beyond Huawei.
The decision may also have geopolitical ramifications. While Taiwan views itself as a sovereign nation, China formally considers Taiwan part of its territory and has vowed to eventually reunify the island with the mainland. The US has adopted an ambiguous stance toward the relationship; see an explainer here.
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