US chip duties meet China harder than expected, TSMC is careful

TSMC tightens restrictions for Chinese chip designers, because they can order chips that are manufactured with 16 nm and smaller processes-unless they use the US government approved companies for packaging. That has far -reaching consequences.

TSMC intensifies rules: stricter requirements for China

Since January 31, 2025, the world’s leading contractor has already established this new regulation for semiconductors, TSMC, how Nikkei Asia reported. This decision goes beyond the current US export restrictions and illustrates the growing caution of the company in the geopolitical area of ​​tension.

Chinese companies react to the new hurdles

The new regulations have far -reaching consequences for the Chinese semiconductor industry. Many companies already switch to Outsourced Semiconductor Assembly and Test (OSAT) service provider approved by the USA in order to continue to receive access to TSMC’s advanced manufacturing processes. According to the online magazine Toms hardware However, the measure of TSMC’s business should hardly affect: China only accounted for around eight percent of the company’s sales in 2023, with a significant part of it comes from the TSMC factory in China. At the same time, the company achieves over 70 percent of its sales with modern manufacturing technologies of 7 Nm and below. There is also a strong demand for 16 nm chips outside of China, especially in the automotive industry.

TSMC exceeds US requirements

The US government already prohibits the export of chips with more than 30 billion transistors, which are manufactured with 14 nm or 16 nm processes or smaller nodes-unless the manufacturer receives a special export license. However, TSMC continues with its new regulations and sets a general limit at 16 Nm, regardless of the number of transisters.

Exceptions for large technology companies

This decision fits the current development: TSMC has already banned Taiwan’s government to build its 2-nanometer production outside the country. This is intended to remain the so -called “silicon protective shield” – a strategy that strengthens Taiwan’s security -political importance through its leading role in the global semiconductor industry. For technology groups such as AMD, Apple, Intel and Nvidia, special permits should continue to be granted – also for chips with more than 30 billion transistors. Nevertheless, these companies will have to apply for export licenses in the future if they want to deliver mainstream GPUs to China – even if they have not yet been restricted.