us tightens grip: chip restrictions loom over tsmc, samsung, and sk hynix

2025-06-23 tsmc

Washington, Monday, 23 June 2025.
the us government is considering harsher chip export restrictions. the restrictions target tsmc, samsung, and sk hynix operations in china. this action could revoke existing authorizations. it would limit their access to us technology. the goal is to impede china’s semiconductor advancements. experts warn this could backfire. it may disrupt the global chip supply chain and harm us companies. one white house official said that this is just laying the groundwork in case the trade truce between the two countries fell apart. stocks of us semiconductor equipment manufacturers with operations in china declined.

tsmc’s manufacturing capacity at risk

The potential restrictions pose a challenge to TSMC’s manufacturing capacity [1]. TSMC, along with Samsung and SK Hynix, currently operates under a comprehensive waiver, allowing them to import US chip-making equipment into their Chinese factories without needing individual licenses [2]. Revoking this waiver would force TSMC to apply for licenses on a case-by-case basis [2]. This introduces uncertainty and potential delays into their production processes. The move directly targets tsmc’s facilities in china, impacting production of chips widely used in automobiles and consumer electronics [7].

geopolitical tensions escalate

These potential restrictions are occurring against a backdrop of escalating geopolitical tensions between the US and China [1][2]. China’s Foreign Ministry has already accused the US of abusing export controls and undermining international trade rules [1]. Ma Jihua, an industry veteran, stated that the US is exercising long-arm jurisdiction, which will affect both Chinese firms and companies from US-allied countries [1]. South Korea’s top trade negotiator plans to raise concerns with US officials regarding these potential restrictions [1]. This situation could strain relationships between the US and its allies [2].

market leadership and competition

The restrictions could impact TSMC’s market leadership [GPT]. Stricter regulations may hinder TSMC’s ability to compete effectively in the Chinese market [1]. China is a vital market and an integral part of the global chip supply chain [1]. The US is trying to construct a chip equipment licensing system similar to China’s rare earth export permit system [2]. Some analysts fear that these restrictions could ultimately benefit Chinese companies by allowing them to gain control of these factories [2]. The long-term effect could disrupt the global industry [2].

expert opinions and industry impact

Experts are divided on the ultimate impact of these restrictions. Zhou Mi, a senior research fellow, believes that revoking previously granted authorizations would be illogical and send a negative signal [1]. An industry insider noted that stricter measures would not immediately shut down Chinese factories, but would disrupt the global industry over time [2]. Some analysts are concerned that these actions may backfire, ultimately strengthening Chinese chipmakers [2]. Shares of US chip equipment makers with operations in china, such as KLA Corporation and Applied Materials, have already seen declines [1].

tsmc’s strategic response

TSMC has been proactively expanding its manufacturing footprint outside of China, including a $100 billion investment in the US to build multiple chip factories, packaging plants, and an R&D center [6]. These investments signal a strategic move to diversify its manufacturing base and mitigate the risks associated with geopolitical tensions [6]. TSMC and other affected companies may seek individual licenses to continue supplying their Chinese factories or explore replacing US equipment with alternatives from Japan and Europe [2]. This could ultimately harm US companies [2].

Bronnen

chip exports trade restrictions