Taiwan Semiconductor Manufacturing Co. (TSMC) has informed Chinese clients that it will halt production of their advanced AI chips as of November 11, 2024, according to a report from the Financial Times. This suspension impacts chips produced at advanced nodes of 7 nanometers (nm) or smaller, aligning with recent U.S. measures aimed at limiting China’s access to high-tech components that could enhance its artificial intelligence capabilities.
Key Points:
- Production Halt: TSMC’s decision affects AI chips for Chinese design companies, particularly those leveraging advanced processing technology. These chips play a crucial role in AI and machine learning tasks, which the U.S. seeks to limit in China due to potential security risks.
- Regulatory Compliance: TSMC emphasized its commitment to regulatory compliance, particularly with export control laws. Any future shipments of advanced AI chips to China would require an approval process likely involving U.S. authorities.
- U.S. Restrictions on Advanced Chips: The move follows recent U.S. penalties on chip shipments to China without authorization, as Washington attempts to restrict access to GPUs that could strengthen China’s AI capabilities.
The suspension coincides with heightened scrutiny from the U.S. Department of Commerce, which is investigating how a TSMC-produced chip was discovered in a device from Huawei, a Chinese tech giant currently facing heavy sanctions.
