NVIDIA Faces Major Setbacks as Japan and Taiwan Halt Chip Supplies to the US

In a seismic shift that could redefine the technological landscape, Japan and Taiwan have halted chip supplies to the United States, following the Trump administration’s revocation of a crucial waiver for TSMC. This dramatic turn of events, effective December 31, mandates that every shipment of US chipmaking equipment to China now requires individual government approval, creating a bureaucratic quagmire that threatens to choke the supply chains of major players like Samsung and SK Hynix.

As delays mount, the repercussions extend beyond Asia. Supply chains in Taiwan, South Korea, and even Europe are feeling the strain, while Chinese manufacturers like SMIC are ramping up capacity, accelerating their advancements in artificial intelligence. The US is not only pressuring its allies but inadvertently empowering its rivals, as Chinese firms seize the opportunity to fill the void left by American restrictions.

Adding to the turmoil, US Treasury bonds are plummeting, with 30-year yields nearing the 5% mark, signaling rising costs for mortgages and business loans amid record budget deficits. Investors are on edge, spooked by shaky policy decisions that could wipe out billions in tariff revenues.

The urgency of the situation is palpable: as TSMC and Samsung grapple with approval delays, US firms like NVIDIA continue to operate in China, reaping profits while their partners suffer losses. The irony is stark—Washington’s push for national security may inadvertently bolster China’s technological independence, potentially fracturing global supply chains and straining alliances.

With the stakes at an all-time high, the US aims to relocate chip production to Arizona, backed by significant government funding. But the challenges are daunting. TSMC’s plans to replicate its advanced manufacturing capabilities in the US are fraught with difficulties, including a critical shortage of trained engineers. Meanwhile, China’s tech giants are closing the gap in AI, with products like Deepseek already challenging US dominance.

As the global balance of power teeters, the implications for the future of technology and economic leadership are profound. The race is on, and the stakes have never been higher.