Taiwan Semiconductor Manufacturing Company (TSMC) Stops AI Chip Production for Chinese Firms

(Reuters) – Taiwan Semiconductor Manufacturing Company has notified Chinese chip design companies that it is suspending production of their advanced AI chips starting Monday, as reported by the Financial Times on Friday, citing three sources familiar with the matter.

TSMC informed its Chinese customers that it will no longer manufacture AI chips at advanced process nodes of seven nanometres or smaller.

Future supplies of such semiconductors by TSMC to Chinese customers will now require an approval process, likely involving Washington, according to two sources referenced in the report.

TSMC stated, "TSMC does not comment on market rumor. TSMC is a law-abiding company and we are committed to complying with all applicable rules and regulations, including applicable export controls."

The U.S. Department of Commerce did not immediately respond to a Reuters request for comment.