TSMC, which will reportedly begin the halt from Monday, has informed its affected customers about the development. The targeted advanced chips are often used in artificial intelligence applications, a sector where the US has already limited chip exports from firms like Nvidia. TSMC has stated that it is committed to adhering to all relevant rules and regulations, including export controls.
Key takeaways:
- The US Department of Commerce has ordered Taiwan Semiconductor Manufacturing Company (TSMC) to halt shipments of advanced chips to Chinese customers after a chip manufactured by TSMC was found inside a Huawei processor.
- The pause on shipments is to allow the US government to determine whether other companies are diverting chips to Huawei, which faces significant trade restrictions from the US.
- TSMC has reportedly notified affected customers that it will be halting shipments starting Monday.
- The advanced chips being targeted are often used for artificial intelligence applications, an area where the US has already been restricting chip exports from companies like Nvidia.