TSMC Tightens Chip Rules for China: US-Approved Packaging Now Required Advanced Silicon Restrictions

Chinese chip designers seeking advanced silicon from manufacturers like TSMC face a new hurdle. Reports indicate Taiwan's TSMC, the world's largest chip manufacturer, will implement tighter restrictions. Certain chip orders for 16nm and smaller processes will require packaging at facilities approved by the US government. Specifically, this means OSATs on a US whitelist. Why the Change? US Export Sanctions Drive New Rules This move is not arbitrary. It is directly linked to tightening export sanctions from the United States. The US government is intensifying efforts to control the flow of advanced technology to China. This new rule adds another layer to existing restrictions. Chinese companies needing chips from TSMC may need to reroute their packaging stage to US-approved OSATs. This detour is necessary to maintain access to TSMC's chip production. TSMC Sees Minor Ripple, Not Major Impact The financial impact on TSMC is likely to be limited. While China represents a market, c…