US ordered TSMC to halt chip shipments to China
By MYBRANDBOOK
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.
The U.S. government has instructed Taiwan Semiconductor Manufacturing Company (TSMC) to cease shipments of advanced AI chips to Chinese customers, marking a significant escalation in export controls. According to reports, the U.S. Commerce Department issued a letter restricting exports of sophisticated 7-nanometer or smaller chips, commonly used in AI and GPU applications, to China.
As a result of the letter, TSMC notified affected clients that it was suspending shipments of chips. The move comes after TSMC disclosed that one of its chips was found in Huawei’s AI processor, raising concerns over potential export control violations.
The U.S. aims to prevent American technology from advancing China’s AI and military capabilities, especially for companies like Huawei, which is already on a U.S. restricted trade list. The directive affects not only Huawei but also other Chinese chip designers, compelling TSMC to notify impacted clients and suspend shipments of these chips starting this week.
The TSMC affirmed its commitment to compliance with international regulations. This order is likely to further strain U.S.-China tech relations, as the U.S. continues to tighten controls over sensitive technologies.
The U.S. government has placed Huawei on its restricted trade list, requiring suppliers to secure licenses for any technology or goods they ship to the company, with a strong likelihood that any support for Huawei's AI initiatives will be denied. This restriction has led TSMC to halt shipments to Sophgo, a Chinese chip designer, after a similar chip was identified in Huawei's AI processor, signaling a possible breach of export controls.
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