TSM Halts AI Chip Shipments to China Amid US Export Restrictions

The United States government has mandated Taiwan Semiconductor Manufacturing Company (TSM, Financial) to cease shipping advanced chips used in artificial intelligence (AI) to Chinese clients. According to reports, the U.S. Department of Commerce has communicated to TSM certain export restrictions on chips that are 7 nanometers or more advanced, primarily utilized in AI accelerators and GPUs in China.

While TSM declined to comment specifically on the reports, a spokesperson reiterated the company’s commitment to compliance with all applicable laws and regulations, including export controls. This development follows a discovery by technology research firm TechInsights, which found TSM chips in Huawei products, prompting TSM to proactively inform the U.S. Department of Commerce about the findings.