US Halts TSMC's Advanced AI Chip Shipments to China

The U.S. Department of Commerce has ordered TSMC to stop supplying advanced AI chips to Chinese companies due to export control violations.

The U.S. Department of Commerce sent a letter to TSMC imposing export restrictions on chips of 7 nanometers or more advanced designs intended for AI applications in China.
The decision follows the discovery of TSMC-manufactured chips in Huawei's AI processors, which violated U.S. export controls.
TSMC has informed its Chinese clients that it will suspend production of advanced AI chips starting November 11, affecting tech giants like Alibaba and Baidu.
The move is part of broader U.S. efforts to limit China's access to advanced technology amid fears of military and cyber threats.
TSMC's revenue is not expected to be significantly impacted, as the company continues to comply with U.S. regulations and prepares for potential future restrictions.