The US has ordered Taiwan Semiconductor Manufacturing to stop shipments of advanced chips to Chinese customers from next Monday. These chips are often used in artificial intelligence (AI) applications. The news agency Reuters reported this information citing related sources.
The US Department of Commerce sent a letter to TSMC. This chip has imposed an export ban on some advanced chips made for China. These chips are of 7 nanometer or better design, used in artificial intelligence accelerators and graphics processing units ('GPUs').
A few weeks ago TSMC informed the Ministry of Commerce that their chip was found in Huawei's AI processor. Research firm Tech Insights broke down the product, revealing evidence of violations of TSMC chips and export controls.
Huawei is on the US restricted trade list. It mandates a license to ship any product or technology to a company supplying the United States. Any license that could help Huawei's AI efforts will be ignored.
Sources told Reuters last month that TSMC had suspended chip supplies to China-based chip designer Sofgo. Because that chip is matched with the chip found in Huawei AI processor.
However, it was not confirmed how the chip was added to Huawei's 'Ascend 910B' processor. It was unveiled in 2022 and is considered to be China's most advanced AI chip.
The latest ban will affect many companies. It will also give the US an opportunity to assess whether any other companies are sending chips for Huawei's AI processors.
After receiving the letter, TSMC informed affected customers that it is suspending shipments of the chips starting Monday.
Commerce Ministry and TSMC spokespersons also declined to comment on the matter.
But TSMC said the company is 'law-abiding', committed to complying with all rules and regulations and export controls.
When the US government wants to impose sanctions or new regulations against a company, it usually follows a long and complicated process. However, this process can be made easier and faster by using an 'Is Informed' letter. Through this letter, the government directly informs the company that it is going to impose new license rules or restrictions. As a result, the new rule came into effect quickly and the company was asked to act accordingly.
