The decision follows a U.S. Commerce Department investigation into how TSMC's chips ended up in a Huawei AI device, despite Huawei being under multiple U.S. sanctions. Future supplies of advanced AI processors to China-based entities will require approval, likely involving U.S. Department of Commerce specialists. The new restrictions are part of TSMC's efforts to strengthen its internal controls and prepare for expected U.S. export limitations on chip sales to China. TSMC did not confirm the email sent to its Chinese clients but emphasized its commitment to adhering to all relevant rules and regulations, including export control requirements.
Key takeaways:
- TSMC is set to stop supplying sophisticated AI processors to all of its Chinese clients from November 11, affecting advanced process technologies such as 7nm and below.
- The new restriction is limited to AI processors and AI GPUs made on 7nm-class and lower nodes, but does not affect smartphone processors, chips for automotive applications, and other devices that cannot be used for military or dual-use applications.
- Future supplies of advanced AI processors to China-based entities would require some kind of approval process, likely involving specialists from the U.S. Department of Commerce.
- TSMC's new restrictions are a response to a probe by the U.S. Commerce Department into how sophisticated chips produced by TSMC for a Chinese customer ended up in a Huawei AI device, despite Huawei being under multiple U.S. sanctions.