Part 4/5:
The TSMC suspension of chip production for China goes beyond a supply issue; it disrupts the country's entire semiconductor industry. The US has been restricting China's access to critical technologies, and TSMC's role as a leading manufacturer has made it a strategic asset for the US.
The impact of these sanctions is already being felt, with over 22,000 chip firms going out of business in the past 5 years. Experts blame US sanctions and economic downturns for these closures, and Chinese leaders are reportedly frustrated with the failure to produce domestic alternatives to US semiconductors.