The U.S. Department of Commerce has just imposed export restrictions on TSMC, blocking shipments of chips using 7nm or more advanced tech to China. This escalation in the ongoing chip war with China isn’t exactly shocking, but it’s worth pausing to consider what’s really happening here: the U.S. is telling a foreign company who it can and can’t do business with. If the situation were reversed, would America stand for it?
This whole issue appears to have been triggered by the discovery of a TSMC-made chip in a new Huawei AI accelerator. The Taiwanese chipmaker, heavily reliant on U.S. suppliers, has already informed its Chinese customers that it will halt shipments of these advanced chips. While Chinese media claim that TSMC can't afford to lose the Chinese market, it’s clear that U.S. pressure is intensifying, as the goal shifts from just blocking Huawei to broadly stifling China's tech development.
For years, the U.S. has pushed TSMC to cut ties with Chinese firms, but this latest move signals a broader strategy to limit China's technological rise. It will be interesting to see if future U.S. administrations continue this approach, or whether it evolves into something more balanced.