Taiwan Semiconductor Manufacturing Company (TSMC), the leading maker of advanced chips, has decided to halt shipments to China after one of its chips was found in a Huawei system. This highlights the risk of sensitive technology cascadering to entities under U.S. sanctions, as TSMC's ties with clients in China must now be scrutinized to ensure compliance with American regulations.
The U.S. government has been systematically blocking sales of high-performance chips to China amid rising concerns about their potential military application. This includes halting sales from companies like Nvidia and pushing for allied firms to cease providing key manufacturing equipment, which is critical in the semiconductor fabrication process.
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