TSMC to suspend production of advanced AI chips for China from November 11: report

On November 9, 2024By Pranco

Taiwan Semiconductor Manufacturing Co. (TSMC) has notified Chinese chip design companies that it is suspending production of their most advanced AI chips from Monday, the Financial Times reported, citing three people familiar with the matter.

TSMC, the world’s largest contract chipmaker, told Chinese customers it would no longer produce AI chips on advanced process nodes of 7 nanometers or smaller, FT said on Friday.

The US has imposed a series of measures aimed at restricting the shipment of advanced GPU chips – which enable AI – to China to hamper its artificial intelligence capabilities, which Washington fears could be used to develop bioweapons and launch large-scale cyber attacks.

Earlier this month, the US imposed a $500,000 fine on New York-based GlobalFoundries for sending chips without authorization to a subsidiary of blacklisted Chinese chipmaker SMIC.

According to the FT report, any future supply of the advanced AI chips by TSMC to Chinese customers would be subject to an approval process in which Washington is likely to be involved.

“TSMC does not comment on market rumors. TSMC is a law-abiding company and we are committed to complying with all applicable rules and regulations, including applicable export controls,” the company said.

The US Commerce Department did not immediately respond to a Reuters request for comment.

The move to restrict exports to China comes as the US Commerce Department investigates how a chip produced by the Taiwanese chipmaker ended up in a product made by China’s heavily sanctioned Huawei.