TSMC halts advanced chip exports to China amid US order, reports said

China accuses US of raising Taiwan tensions.
TSMC reported a 60% year-on-year profit jump in Q1 2025, driven by strong AI chip demand despite weaker smartphone sales and looming tariff threats.

China’s Taiwan Affairs Office has criticised a recent US decision to halt Taiwan Semiconductor Manufacturing Co. (TSMC) from shipping advanced chips to certain Chinese customers. The office’s spokeswoman, Zhu Fenglian, stated that the US is ‘playing the Taiwan card’ to heighten tensions in the Taiwan Straits and that the move negatively impacts Taiwanese businesses. This statement follows reports that TSMC stopped these shipments on Monday after an order from US authorities.

The restricted chips, widely used in AI technology, are part of ongoing US efforts to tighten export controls amid rising bipartisan concerns over Chinese access to advanced tech. The restrictions follow a recent notification by TSMC to the US Commerce Department, revealing that one of its chips was used in a Huawei AI processor. Huawei, a central figure in US-China tech tensions, has been under trade restrictions, requiring suppliers to secure licenses for any technology exports.