The United States has ordered Taiwan Semiconductor Manufacturing Co. (TSMC) to cease shipments of certain advanced microchips to its Chinese clients, a move aimed at curtailing China’s access to high-performance technology crucial for artificial intelligence (AI) development. The new restriction, which went into effect on Monday, applies specifically to TSMC’s most sophisticated chip designs, particularly those of 7 nanometers or more, according to a source familiar with the matter. This measure, reportedly outlined in a letter from the U.S. Department of Commerce to TSMC, targets chips frequently used in AI acceleration and advanced graphics processing units (GPUs). These technologies are vital for powering AI-driven applications, making this a significant action in the ongoing technology competition between the U.S. and China. This restriction is expected to impact a range of Chinese companies dependent on TSMC’s chips for their AI advancements, as reported by Reuters. The decision comes on the heels of an incident involving a TSMC-manufactured chip discovered in Huawei’s Ascend 910B AI processor, according to a recent investigation by tech research firm Tech Insights. Per Reuters, Tech Insights uncovered this after examining the Huawei product, sparking concerns over a potential export control breach. Huawei, a company that has long faced scrutiny from U.S. regulators, remains on a restricted trade list that mandates U.S. companies and their affiliates to obtain special licenses for any technology exports that could support the company’s AI efforts.

Full report : United States orders Taiwanese semiconductor maker to stop exporting advanced AI Chips to China.