The US has ordered Taiwan Semiconductor Manufacturing Company (TSMC) to cease shipments of advanced chips to Chinese customers, specifically those used in AI applications, reported Reuters, citing a source.
Effective from 11 November 2024, this directive targets chips of 7nm, or more advanced designs that power AI accelerators and GPUs, the source said.
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The US Department of Commerce’s order follows TSMC’s notification to the department that one of its chips was found in a Huawei AI processor, a discovery made by tech research company TechInsights.
Huawei, central to US action, is on a restricted trade list, requiring suppliers to obtain licences to ship goods or technology to the company.
Licences that could support Huawei’s AI efforts are likely to be denied.
TSMC halted shipments to Sophgo, a Chinese chip designer, after its chip was found in the AI processor developed by Huawei.
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By GlobalDataThe publication reported it was unable to determine how the chip made its way into Huawei’s Ascend 910B, launched in 2022 and regarded as the most advanced AI chip from a Chinese company.
The US action impacts many companies and allows the US to assess if others are diverting chips to Huawei for its AI processor.
The Commerce Department declined to comment on the matter.
Taiwan’s Economy Ministry stated: “TSMC has had regular discussions with the government on export control issues and has made it clear that it will comply with domestic and international regulations.”
A TSMC spokesperson added that the company is “committed to complying with all applicable rules and regulations, including applicable export controls”.
Ijiwei, a Chinese media site, reported that TSMC notified Chinese chip design companies of the suspension of 7nm or below chips for AI and GPU customers, starting this week.
This action comes amid concerns from US lawmakers about export control inadequacies on China and the Commerce Department’s enforcement.
