Summary

Taiwan Semiconductor Manufacturing Company (TSMC) will halt shipments of advanced chips to China after discovering one ended up in a Huawei device, potentially violating U.S. export restrictions.

TSMC, which supplies chips for major global tech firms like Apple and Nvidia, will review orders to ensure compliance with U.S. regulations aimed at preventing high-tech chips from reaching Chinese companies, particularly those with military applications.

U.S. export controls require TSMC to verify chip capabilities, but a recent oversight raised concerns about its vetting process.

TSMC’s revenue from Chinese clients has already dropped significantly due to these restrictions.