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US to Stop TSMC, Intel From Adding Advanced Chip Fabs in China

  • Congress approves $52 billion funding to aid chip production
  • Firms getting US grant may need to curb China expansion
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House Clears $52B Chip Bill for Biden's Signature

As the US Congress passed an historic $52 billion federal program to boost domestic chipmaking capabilities, it included one significant caveat: Companies that receive the funding have to promise not to increase their production of advanced chips in China. 

It’s a condition that will certainly add to escalating tensions between Washington and Beijing. The curbs will hit companies like Intel Corp. and Taiwan Semiconductor Manufacturing Co., leading chipmakers that have tried to build their businesses in China. TSMC won’t be able to substantially upgrade or expand its existing facilities, effectively losing some growth opportunities in the world’s biggest semiconductor market.