Taiwan Semiconductor (NYSE:TSM) is taking an extremely cautious approach to comply with U.S. export controls, Nikkei Asia reported on Friday.
The company has informed Chinese customers using 16nm or older nodes that shipments will not proceed unless they utilize U.S.-approved chip packaging services, the report said, citing sources familiar with the matter. The restrictions apply to all processors, regardless of whether they are used for artificial intelligence (AI).
Taiwan Semi, which holds over 50% of the global foundry market, consulted legal experts and the U.S. Commerce Department before deciding that orders would not be shipped to clients relying on foreign chip packaging facilities in China, even if those facilities are on the approved list. A Taiwan Semiconductor spokesperson stated that the company "complies with all applicable laws and regulations and is fully committed to complying with the new export control rules announced."
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