Zhu Fenglian, spokesman for China’s Taiwan Affairs Office, said the US aimed to worsen the situation with Taiwan and that such a move undermined the interests of Taiwanese companies.

She was asked about the reports at a news conference.

The comments are the first official response from China after Reuters reported on Sunday that the US had ordered TSMC to do so.

TSMC halted the shipments from Monday, a source familiar with the matter had said.

The chips are often used in artificial intelligence (AI) applications and comes as both Republican and Democrat lawmakers have raised concerns about the inadequacy of export controls on China and the commerce department’s enforcement of them.

A few weeks ago, TSMC notified the commerce department that one of its chips had been found in a Huawei AI processor.

Chinese tech giant Huawei is at the centre of the US action and on a restricted trade list, which requires suppliers to obtain licences to ship any goods or technology to the company.