TSMC's decision was influenced by the need to tighten internal controls after its chips were found in products produced by Huawei Technologies, which is under US export controls. The company's supply chain has been under pressure and it faces a potentially difficult relationship with the incoming US administration. Despite this, TSMC maintains that its US investment plan remains unchanged and that it is committed to complying with all applicable rules and regulations.
Key takeaways:
- Taiwan Semiconductor Manufacturing Company (TSMC) will stop supplying its most advanced AI chips to Chinese customers, according to reports.
- The move is in line with the US's efforts to restrict China's access to advanced technology and is not expected to significantly impact TSMC's revenue.
- Future supply to Chinese companies would require an approval process likely involving Washington.
- The decision comes ahead of expected new export controls on chip supplies to China by the Biden administration.