The US has ordered Taiwan Semiconductor Manufacturing Company (TSM) to halt shipments of advanced chips to China, citing concerns over potential military applications. The move comes as the US seeks to curb exports of key technologies that could be used in artificial intelligence and other areas with strategic importance.
TSMC’s most advanced production process now uses 3-nanometer technology, which is being restricted due to its potential use in AI applications. The company’s stock fell 3.6% on Monday after the announcement, despite Wedbush Securities analyst Matt Bryson predicting minimal impact on revenue.
Industry analysts, including Jordan Klein at Mizuho Securities, have downplayed concerns about the restrictions’ effects on TSMC and other companies dependent on Chinese clients. However, some experts view the move as a significant development in US efforts to restrict China’s access to advanced technologies.
TSMC supplies chips to top tech firms such as Apple, AMD, Broadcom, Nvidia, and Qualcomm, making it essential for understanding how this restriction may affect the global semiconductor market. The company is now expected to face increased scrutiny from regulators and investors over its relationships with Chinese clients.
Source: https://www.investors.com/news/technology/tsm-stock-tsmc-curbs-sales-advanced-chips-china