China’s Taiwan Affairs Office has reacted strongly to the recent reports that the U.S. has ordered Taiwan Semiconductor Manufacturing Co. (TSMC) to halt shipments of advanced chips to certain Chinese customers, including Huawei. Zhu Fenglian, a spokesperson for the office, accused the United States of “playing the Taiwan card” to escalate tensions in the Taiwan Straits. She argued that such actions were detrimental to Taiwanese companies and their interests, and claimed that the move was part of an effort by the U.S. to worsen relations with Taiwan.
The reports, first highlighted by Reuters, reveal that TSMC, one of the world’s largest chip manufacturers, complied with the U.S. request to halt shipments. The decision to stop the shipments took effect on Monday, and the chips in question are primarily used in artificial intelligence applications. The U.S. action came in the context of growing concerns in Washington, where lawmakers from both major political parties have raised alarms over the inadequacy of export controls on China, particularly in relation to sensitive technologies.
In recent weeks, TSMC had informed the U.S. Commerce Department that one of its chips had been found in a Huawei AI processor. Huawei, a major Chinese technology firm, has been at the center of U.S. trade restrictions due to national security concerns. As part of these restrictions, companies like TSMC are required to obtain licenses before shipping certain goods or technologies to Huawei, which is on the U.S. restricted trade list.
This latest development underscores the ongoing tensions between the U.S. and China over technological trade and the strategic competition in the semiconductor sector. It also highlights the delicate balance Taiwanese companies must maintain in their dealings with both the U.S. and China, which are two of the world’s largest economic powers.
