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US May Soon Limit Samsung and TSMC’s Chip Business with China

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Samsung and TSMC may face challenges in supplying chips to China in massive quantities from the US government anytime shortly.

Samsung and TSMC are both semiconductor companies that design and manufacture chips for supply to other brands. According to a new report, both brands may soon be in trouble since the US government could pressure them to slow down chip sales to China.

The report from Bloomberg unveiled that the US may soon enforce the restriction on both Samsung and TSMC to reduce their chip business with China. The reason behind this seems to be reducing the flow of semiconductors to China.

On the other side, to stand strong and deal with the coming challenges, Chinese brands are already filling up their stocks with the latest available semiconductors from OEMs. Reportedly, President-elect Donald Trump is expected to enforce more restrictions and bring new tariffs to destabilize China’s technological growth.

Noticeably, the Biden administration introduced the planned chip flow regulations as part of a “flurry of measures” during its final days in office. In case applied, the measures would seek to encourage chip manufacturers such as Samsung, TSMC, and Intel to increase due diligence and more carefully scrutinize customers, according to people familiar with the matter. It remains to see what happens next and if this report comes true, how Chinese chip producers will deal with these challenges.

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