The US Commerce Department has broadened export controls on advanced chipmaking tools and technology, adding fresh pressure on semiconductor firms with exposure to China. The new rules are expected to affect supply arrangements involving Nvidia, TSMC and other foundries that serve Chinese customers.

According to Reuters, the updated restrictions are aimed at limiting access to critical equipment used in the production of advanced chips. The move reflects Washington’s continued effort to slow Beijing’s progress in high-end semiconductors, a sector seen as strategically important to both economic competition and national security.

Nvidia relies on TSMC and other manufacturing partners for key components in its chip supply chain, making the company vulnerable to shifts in trade policy. The tighter controls could force firms to adjust sourcing, production planning and customer relationships in one of the world’s most important technology markets.

The latest escalation underscores how semiconductor policy has become a central fault line in US-China relations. For chipmakers and investors, the new restrictions add another layer of uncertainty to an industry already facing geopolitical pressure, compliance costs and supply-chain disruption.