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TSMC has announced suspension of production of its most advanced AI chips to China effective Monday, on geopolitical tensions between the West and the East. The Taiwan Semiconductor Manufacturing Company (TSMC) notified its Chinese chip design companies of the suspension as the US continues to thwart China’s AI ambitions. TSMC to implement tight controls According to a Financial Times article, TSMC, which is the largest contract chipmaker globally alerted its Chinese market via email of the intention to halt production of the AI chips at advanced process nodes of 7 nanometers or smaller beginning this Monday, according to three people familiar with the matter. The email stated that shipment of 7nm and below processes will be stopped beginning November 11. According to wccftech, this supply affects only firms that leverage TSMC’s technology for AI, smartphones, and automobile chips. Two of the three people revealed that any future supplies of such semiconductors by the chip-making giant to the Chinese markets would be subject to an approval process likely to involve Washington. The decision comes as TSMC is rolling out a new policy after its systems, which were meant for another client, ended up in a Huawei device. Huawei is currently under multiple sanctions. The decision is also reportedly meant to help the firm improve its internal controls in the face of US the ongoing investigation and the next wave of US tightening of controls of chip exports to China. The ban is also expected to stay in place until TSMC and the US Department of Commerce can negotiate and issue specific control details. The initiative comes as the US has imposed export bans on advanced AI systems in China. US firms like Nvidia have been barred from exporting their cutting-edge processors to the Asian country. Additionally, the US has also made…

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Filed under: News - @ November 8, 2024 9:26 pm