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Investing.com -- The recent U.S. export restrictions on China’s chip sector are causing more disruption than initially anticipated. Two sources familiar with the matter told Nikkei Asia that Taiwan Semiconductor Manufacturing Co. (TSMC), the leading global contract chipmaker, is adopting an extremely cautious approach to ensure compliance with these regulations.
TSMC has been communicating to its Chinese customers, who utilize the company’s 16-nanometer or superior production technologies, that it will not be able to fulfill their orders unless they employ chip packaging services from a supplier present on a U.S. "white list" of approved businesses. This move is a direct result of the new export controls set by the U.S., emphasizing the impact of these regulations on the global chip industry.
The cautious approach by TSMC demonstrates the efforts companies are making to comply with the new U.S. export rules, which are causing significant disruption in the chip sector. The situation underscores the challenges faced by companies navigating the complex landscape of international trade regulations. The full impact of these rules on the global chip industry remains to be seen.
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