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.

Taiwan Semiconductor Manufacturing Co (TSMC) can’t produce 2nm chips outside of Tawain, according to J.W. Kuo, the country's Minister of Economic Affairs. The Arizona fab 21 is still on track to produce 4nm chips in 2025.

China's Taiwan Affairs Office said on Wednesday that a U.S. order to Taiwan Semiconductor Manufacturing Co to halt shipments of advanced chips to Chinese customers undermines the interests of Taiwanese companies and raises tension across the Taiwan Strait.