China’s semiconductor index leapt close to a three-year high on Monday on bets a U.S. order halting Taiwan Semiconductor Manufacturing Co’s (2330.TW), opens new tab shipments of advanced chips to Chinese customers could accelerate Beijing’s self-reliance efforts.
TSMC will from Monday suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the U.S. Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday.
Analysts said that while the move might lead to some short-term pain for Chinese firms involved in designing chips for artificial intelligence accelerators and graphics processing units, it could benefit the domestic chipmaking sector as companies would have few alternatives.
Several Chinese technology firms and chip designers have in recent years sought to design their own advanced processors after the U.S. sanctioned Huawei Technologies (HWT.UL) and barred the likes of Nvidia (NVDA.O), opens new tab and AMD (AMD.O), opens new tab from selling their most sophisticated chips to China.
I love that the USA has the power to order a Chinese country not to ship things it makes to other parts of China.
Who could’ve seen this coming