The United States has ordered Taiwan Semiconductor Manufacturing Co. (TSMC) to suspend shipments of advanced AI chips to China, marking a new escalation in its technology export restrictions targeting Chinese companies, including Huawei. Starting November 11, TSMC will halt the delivery of chips with seven-nanometer or more advanced designs, widely used in AI acceleration and graphics processing units (GPUs), to Chinese customers. This decision, reportedly enforced via a Commerce Department directive, impacts several Chinese firms and allows the US to assess potential diversions of AI chips to Huawei.
Key Points:
- Export Restrictions Tighten on Advanced Chips: This clampdown follows revelations that TSMC’s chips were found in a Huawei AI processor, suggesting a potential breach of export controls. The recent restriction specifically prevents TSMC from supplying advanced AI chips, particularly those used in GPUs, to Chinese companies.
- Broader Impact Across Chinese Tech Firms: The suspension affects TSMC’s relationships with Chinese clients, notably impacting firms like Sophgo. TSMC has reportedly communicated these changes to affected customers and expressed commitment to complying with international trade regulations.
- Huawei’s Position Under Scrutiny: As Huawei remains on the US restricted trade list, the new directive is part of a broader US effort to limit the Chinese telecom giant’s AI capabilities. The US aims to prevent Huawei from advancing its AI hardware portfolio, particularly its Ascend AI chips, by enforcing stricter export controls.
- Legislative and Administrative Push for Stronger Export Policies: Both US political parties have expressed frustration over the Commerce Department’s delays in formalizing updated export control rules on AI and semiconductor technology. This order enables the Commerce Department to sidestep lengthy rule-making, issuing swift directives to prevent high-tech exports to China.
- Ongoing Expansion of Export Restrictions: The US previously issued similar restrictions on Nvidia, AMD, and other chipmakers, initially through temporary letters that later became comprehensive export rules. The new enforcement mechanism, an “is informed” letter, bypasses administrative delays, suggesting the US may implement further restrictions on Chinese technology imports in the near future.
Industry and International Response:
TSMC has adhered to US regulations, with Taiwan’s Ministry of Economic Affairs affirming TSMC’s compliance with domestic and global export laws. This recent development highlights the increasingly complex dynamics in the global semiconductor supply chain as the US seeks to limit China’s access to advanced AI capabilities through rigorous export controls.
