Taiwan Semiconductor Manufacturing reported a 57% rise in profit on strong demand for hardware to power AI systems.

The regulations, among the strongest yet from the Biden administration, limit AI chip exports to most countries except for a select group of close U.S. allies.

The Biden administration’s latest bid to curb China’s access to the most advanced AI models and AI chips could have a major impact on the AI boom and its enablers, most prominently chip giant Nvidia.