TSMC made the decision to cut off Chinese firms in anticipation of updated U.S. export controls and to improve internal controls. The company is also concerned about potential accusations from the incoming Trump administration of stealing chip manufacturing from the U.S. TSMC is currently under investigation over how its advanced chip technology ended up in a product from sanctioned Chinese tech giant Huawei. The company is also facing domestic restrictions preventing it from producing 2-nanometer chips abroad.
Key takeaways:
- The U.S. has ordered Taiwan Semiconductor Manufacturing Company (TSMC) to stop shipping advanced AI chips to China, according to unnamed sources.
- TSMC has reportedly informed its Chinese customers that it will no longer manufacture AI chips with the advanced 7-nanometer process or beyond.
- The chipmaker's decision to cut off Chinese firms is reportedly in anticipation of updated U.S. export controls on chips sold to China by the outgoing Biden administration and fears of being targeted by the incoming Trump administration.
- TSMC is currently under investigation over how its advanced chip technology ended up in a cutting-edge AI accelerator from sanctioned Chinese tech giant Huawei.