Taiwan Semiconductor Manufacturing Co. is moving faster to expand production of its most advanced chips as Washington keeps tightening export restrictions on high-end artificial intelligence technology headed for China, according to industry sources cited by Reuters.

The shift comes as demand remains strong for cutting-edge semiconductors used in AI systems, data centers, and other compute-heavy applications. TSMC’s push to add capacity at advanced process nodes reflects both customer demand and the broader strategic race over who can build the most powerful chips.

The U.S. export controls are aimed at limiting China’s access to top-tier AI hardware, part of an effort to slow Beijing’s progress in advanced computing and military-adjacent applications. Companies across the semiconductor supply chain have been adjusting plans to navigate the restrictions while trying to protect revenue and long-term market share.

For TSMC, the expansion underscores its central role in the global chip industry. As the world’s largest contract chipmaker, the company sits at the center of tensions between U.S. technology policy, Chinese demand, and the accelerating competition to supply advanced AI infrastructure.