TSMC Halts Advanced Chip Shipments To Chinese AI Companies

Starting November 11, TSMC plans to stop supplying 7 nm and smaller chips to Chinese companies working on AI processors and GPUs. "The move is reportedly to ensure it remains compliant with US export restrictions," reports The Register. From the report: This will not affect Chinese customers wanting 7 nm chips from TSMC for other applications such as mobile and communications, according to Nikkei, which said the overall impact on the chipmaker's revenue is likely to be minimal. TrendForce further cites another China-based source who claims the move was at the behest of the US Department of Commerce, which informed TSMC that any such shipments should not proceed unless approved and licensed by its BIS (Bureau of Industry and Security). We asked the agency for confirmation.

Any moves by the silicon supremo is likely to be out of caution to pre-empt accusations from Washington that it isn't doing enough to prevent advanced technology from getting into the hands of Chinese entities that have been sanctioned. As TrendForce notes, it "highlights the foundry giant's delicate position in the global semiconductor supply chain amid the heating chip war between the world's two superpowers."

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