U.S. restricts TSMC's export of advanced chips to China

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Limitations apply to semiconductors with 7-nanometer or more advanced designs

ept.ca, Nov. 11, 2024 – 

The U.S. Department of Commerce has imposed new restrictions on Taiwan Semiconductor Manufacturing Co. (TSMC), barring the company from exporting advanced chips to China, according to sources cited by Reuters. The limitations apply to semiconductors with 7-nanometer or more advanced designs, which are commonly used in artificial intelligence (AI) applications.

TSMC has reportedly informed its affected clients, including major Chinese firms, that shipments of these chips will be halted. Industry insiders suggest that companies such as Baidu and Alibaba could face significant disruptions as a result.

The U.S. directive follows recent revelations that one of TSMC's chips was found in a Huawei AI processor. Huawei, which remains on a U.S. trade blacklist, requires special licenses for suppliers to send it technology or components.

TSMC also suspended deliveries to China-based chipmaker Sophgo after discovering that one of its chips was linked to the Huawei processor in question. Sophgo, however, denies any association with Huawei, stating that the U.S. investigation is unrelated to its operations.

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