Recently, Taiwan Semiconductor Manufacturing Company (TSMC) has officially informed a significant number of Integrated Circuit (IC) chip design firms in Mainland China of stringent limitations on the utilization of 16/14nm processes. Effective January 31, 2025, any products employing processes of 16/14nm or smaller must be packaged at "approved OSAT" facilities listed on the white list maintained by the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce. If TSMC fails to receive a certified signed copy from the packaging factory, shipments of the relevant products will be halted. Several affected Mainland Chinese IC design companies have acknowledged this news, noting that chips subject to these regulations must now be transferred to US-approved packaging and testing facilities for processing.

This measure has significant ramifications for Mainland Chinese IC design firms and the broader semiconductor industry. In the immediate term, it may cause disruptions in production schedules, extend delivery timelines, and increase costs for companies as they seek new packaging solutions and adjust their supply chain configurations. However, in the long run, it is anticipated to spur the semiconductor industry in Mainland China to accelerate its efforts towards independent research and development, as well as domestic substitution.