Taiwan Semiconductor Manufacturing Co. is preparing to increase production of advanced chips used by Nvidia, according to a Reuters report, as U.S. export controls narrow the flow of high-end semiconductors to China.

The move highlights how chipmakers are adjusting their manufacturing plans to match fast-growing demand for artificial intelligence hardware while navigating a more restrictive trade environment. Nvidia remains one of the biggest buyers of cutting-edge chips that power AI systems, data centers, and other compute-intensive applications.

Washington has steadily tightened rules on advanced semiconductor exports in an effort to limit China’s access to technologies with potential military and strategic uses. That has pushed suppliers and customers to rethink sourcing, capacity planning, and product mix across the global chip industry.

TSMC, the world’s largest contract chipmaker, has become central to that shift because of its role in producing the most advanced processors. Any increase in output could help support Nvidia’s supply needs, while also underscoring the pressure U.S. restrictions are placing on the wider technology supply chain.