China's Taiwan Affairs Office said on Wednesday that a U.S. order to Taiwan Semiconductor Manufacturing Co to halt shipments of advanced chips to Chinese customers undermines the interests of Taiwanese companies and raises tension across the Taiwan Strait.

After a chip manufactured by Taiwan Semiconductor Manufacturing Company was found inside a Huawei processor, the US Department of Commerce has ordered the

Taiwan Semiconductor Manufacturing Co (TSMC) can’t produce 2nm chips outside of Tawain, according to J.W. Kuo, the country's Minister of Economic Affairs. The Arizona fab 21 is still on track to produce 4nm chips in 2025.