Chinese authorities are weighing new export controls to prevent domestic firms like Alibaba and ByteDance from using overseas foundries. The proposal would prohibit these companies from manufacturing advanced chips at facilities like Taiwan Semiconductor Manufacturing Co. (TSMC).
The Ministry of Commerce is currently consulting with major tech firms regarding these potential measures. These restrictions belong to a broader package targeting artificial intelligence and data transfers to protect strategic assets amid intensifying competition with the U.S.
Officials may mandate that domestic companies use local foundries such as SMIC to bolster semiconductor self-reliance. The proposals remain in the consultation phase with no final decisions reached.