China’s semiconductor index reached a near three-year peak on Monday after US restrictions on Taiwan Semiconductor Manufacturing Co (TSMC), which affected chip shipments to China.

The suspension may pose short-term challenges for Chinese companies.

Many Chinese tech firms have been developing in-house processors since United States sanctions on Huawei and restrictions on Nvidia and AMD chip sales.

These companies might need to quicken efforts toward self-reliance in light of the new TSMC constraints.

Recent Taiwan Semiconductor Manufacturing Co developments