US Blocks TSMC Chip Exports: A Threat to Apple's Supply Chain?

The US Department of Commerce has ordered TSMC to stop supplying certain AI-based chips to China due to the company's connection with Huawei. This follows a Department of Commerce investigation into alleged breaches of sanctions imposed on Huawei by third-party intermediaries trying to order restricted chips.

However, the ban won't impact Apple Inc.'s supply chain significantly because the bulk of its iPhone processors are manufactured elsewhere, although it could make an impact on shipments of higher-end iPhones next year if the ban remains in place.

The bigger threat comes from Taiwan's prohibition regarding producing 2-nanometer chips anywhere but in Taiwan itself - which will constrain Apple to using slightly older chip technology at TSMC's new Arizona facility.