In a bold move that sharpens the U.S.-China chip conflict, the United States has directed Taiwan Semiconductor Manufacturing Co. (TSMC) to stop shipping advanced chips to Chinese clients. As reported by sources such as Reuters and News.ro, the U.S. Department of Commerce issued this restriction to limit China’s access to high-tech processors used in artificial intelligence (AI) applications.

Why the U.S.-China Chip Conflict Centers on Advanced Technology

To clarify, chips of 7 nanometers or more power crucial applications in AI and defense systems. Last month, TSMC reported to the Department of Commerce that one of its chips had appeared in Huawei’s AI processor, raising suspicions about a breach of U.S. export rules. This incident heightened American concerns about China’s technological advancements, leading to new export restrictions.

U.S. Restrictions and Their Impact on Chinese Companies

The U.S. aims to restrict Huawei and other Chinese tech companies that depend on foreign semiconductors. Placed on the restricted U.S. trade list, Huawei now faces even more obstacles, as its requests for American technology licenses related to AI are almost certain to be denied. Notably, this directive to TSMC signals a strong message that the U.S.-China chip conflict is far from over, impacting many Chinese firms.

Taiwan’s Role in the Intensifying Chip Conflict

Taiwan’s Ministry of Economy stated that TSMC will comply with international trade laws. Nevertheless, Taiwan feels pressure from both sides as the U.S.-China chip conflict escalates. Leading the world in semiconductor production, Taiwan must balance these tensions carefully to maintain stability in the global tech industry.


Learn more about technology and geopolitics in our Politics section.

Source: Reuters

Photo: DALL-E

Shares:
Leave a Reply

Your email address will not be published. Required fields are marked *