TSMC Halts Advanced Chip Shipments to Chinese Firms

TSMC has reportedly suspended shipments of advanced chips to Chinese companies, marking a significant shift in its business operations amid growing geopolitical tensions

The US Department of Commerce has directed Taiwan Semiconductor Manufacturing Company to cease the shipment of advanced processors to Chinese customers following the discovery of a chip manufactured by the company within a Huawei processor, according to a report in Reuters.

The halt in shipments is intended to enable the government to ascertain whether other companies are diverting processors to Huawei, as Huawei is subject to substantial trade restrictions from the United States.

According to reports, TSMC has informed affected customers that shipments will be suspended effective Monday.

The advanced processors that are being targeted are frequently employed in artificial intelligence applications, an area in which the United States has already implemented export restrictions on chips from companies such as Nvidia.

TSMC stated in a statement that was provided to Reuters and other publications that it is “dedicated to adhering to all relevant rules and regulations, including export controls.”