US-China Semiconductor Spat Deepens as China Criticizes TSMC Chip Suspension

China’s Taiwan Affairs Office has criticized the United States for ordering Taiwan Semiconductor Manufacturing Co (TSMC) to cease shipments of advanced chips to some Chinese clients. The move, reported by Reuters, is seen as a ploy by the U.S. to manipulate the “Taiwan card” in order to heighten tensions in the Taiwan Straits.

After being inquired on the reports, Zhu Fenglian, the spokesperson for China’s Taiwan Affairs Office, accused the U.S. of exacerbating the situation with Taiwan and harming the interests of Taiwanese companies.

This marks China’s first official reaction following Reuters’ disclosure that the U.S. had issued such an order to TSMC after the company followed through by suspending the shipments commencing Monday, according to a source with knowledge of the situation.

The chips in question are widely utilized in artificial intelligence applications, prompting bipartisan concern in the U.S. Congress over the lack of robust export controls on China and the Commerce Department’s enforcement capabilities.

Recently, TSMC informed the U.S. Commerce Department that one of its chips was discovered in a Huawei artificial intelligence processor.

The Chinese tech firm is under strict trade restrictions, necessitating suppliers to acquire licenses prior to exporting any goods or technology to the company.