The US has banned a Taiwanese manufacturer from exporting microchips for artificial intelligence applications to China. Taiwan Semiconductor Manufacturing (TSMC) will no longer be allowed to supply advanced chips to Chinese customers from Monday, an insider told Reuters. These chips are often used for AI programs.
According to the insider, the US Department of Commerce has sent a letter to TSMC imposing export restrictions on, among other things, chips with structures in the seven nanometer range. The US order comes a few weeks after TSMC informed the US ministry that one of its chips had been found in an AI processor from Chinese company Huawei. However, Huawei is one of the companies subject to US trade restrictions. All sales of high-tech goods to Huawei must therefore be licensed by the US.
Deliveries to customers in China suspended
TSMC has already suspended shipments to China-based chip designer Sophgo after the AI chip was discovered in Huawei’s product. Informed sources had already told Reuters this last month.
The advanced TSMC chip is part of the Huawei Ascend 910B chip, which was released in 2022. It is considered the most advanced AI chip from a Chinese company. How exactly the Taiwanese chip could get into the Huawei product initially remained open. US authorities may now investigate whether other companies are diverting chips for Huawei’s AI processor. The US Commerce Department initially declined to comment.
“TSMC has regularly consulted with the government on export controls and has made it clear that it will comply with domestic and international regulations,” Taiwan’s Ministry of Economic Affairs said. A TSMC spokesperson declined to comment, saying only that TSMC is in compliance with export controls.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
