Taiwan Semiconductor Manufacturing Co. has delayed the next phase of its Arizona factory expansion, according to sources familiar with the matter, after Washington moved to tighten controls on exports of advanced chipmaking equipment tied to Chinese-linked entities.

The pause underscores how US efforts to restrict access to extreme-ultraviolet lithography tools are reshaping supply chains in the global semiconductor industry. Those machines are critical for producing the most advanced chips, and export limits have added new complications for companies investing in new fabrication capacity outside Asia.

TSMC is a central supplier to major technology firms, including chip designers that rely on cutting-edge manufacturing. Any slowdown in its expansion plans could affect the pace at which additional US production comes online, even as Washington continues to push for a stronger domestic semiconductor base.

The company has not publicly detailed the revised timeline for the Arizona project. The delay highlights the growing tension between industrial policy, national-security restrictions and the semiconductor sector’s dependence on highly specialized tools and cross-border supply chains.