[November 11, 2024] – Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading contract chipmaker, announced today it is suspending production of advanced artificial intelligence (AI) chips for Chinese customers, effective Monday. This action follows a U.S. Department of Commerce directive to halt shipments of advanced chips to Chinese companies, pending an investigation into potential violations of export controls.
The suspension impacts chips manufactured using 7-nanometer and smaller process nodes. These advanced chips are frequently used in AI applications, a sector already subject to stringent U.S. export restrictions. TSMC confirmed its commitment to full compliance with all applicable rules and regulations, including export controls. The company has notified affected Chinese customers of the production halt. The investigation aims to determine if any companies have circumvented existing trade restrictions by diverting chips to sanctioned entities like Huawei. The U.S. government’s actions reflect concerns about the potential use of advanced AI capabilities in China for purposes such as bioweapons development and large-scale cyberattacks.
