According to United Daily News, TSMC is restricting Chinese chip design firms. They cannot order chips made with 16nm and below processes unless they use U.S. government-approved third-party packaging houses. This move aligns with stricter U.S. export rules, forcing many Chinese companies to shift packaging operations to U.S.-whitelisted OSATs to maintain supply.
As of 2023, China contributed around 8% of TSMC’s revenue, a significant part of which comes from the company's fab in China. Thus, the impact on TSMC revenue is expected to be minor, as over 70% of its revenue comes from advanced technologies, 7nm-class production nodes, and below. Meanwhile, demand for 16nm FinFET chips extends beyond China, including U.S. and European automotive customers.
