Washington has revoked Taiwan Semiconductor Manufacturing Company’s (TSMC) authorisation to freely ship advanced technology from the US to China, a move that could ripple across the global technology supply chain and impact SMEs that depend on affordable semiconductors.
The decision, which follows similar restrictions placed on Samsung and SK Hynix, complicates how manufacturers source American-made products for their Chinese factories. Analysts warn that the new requirement for individual licenses will raise costs, slow shipments, and put pressure on smaller suppliers and SMEs that rely on timely chip availability for production.
Read also,
- NUPRC projects oil output surge to 2.5m bpd by 2026
- Nigeria showcases creative leadership at ICOM Dubai 2025
- Apply Now: Création Africa supports creative entrepreneurs
- Government suspends new fuel import tariff
- Nigeria MSMEs adopt digital tools to boost growth
TSMC, the world’s largest chipmaker, said it is engaging the US government to minimise disruptions, noting that while its Chinese operations mainly produce older-generation chips, SMEs in sectors like consumer electronics, automotive, and industrial manufacturing could face higher costs if supply bottlenecks persist.
Industry experts add that Chinese firms may accelerate the development of domestic alternatives, potentially altering global competition. While the overall impact on TSMC’s revenues is expected to be limited, SMEs dependent on flexible, cost-effective chip sourcing may find themselves squeezed by rising prices and supply chain uncertainty.
Discover more from SMALL BUSINESS INSIGHTS
Subscribe to get the latest posts to your email.
