China chip index nears 3-year high as TSMC order fuels self-reliance bets

China's semiconductor index leapt close to a three-year high on Monday on bets a U.S. order halting Taiwan Semiconductor Manufacturing Co's shipments of advanced chips to Chinese customers could accelerate Beijing's self-reliance efforts. TSMC will from Monday suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the U.S. Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday. Analysts said that while the move might lead to some short-term pain for Chinese firms involved in designing chips for artificial intelligence accelerators and graphics processing units, it could benefit the domestic chipmaking sector as companies would have few alternatives.