TSMC To Freeze Production Of Advanced AI Chips For China

Taiwan Semiconductor Manufacturing Co. (TSMC) has notified Chinese chip design companies that it is suspending production of their advanced AI chips, Financial Times reported, citing three people familiar with the matter.

TSMC has informed Chinese customers that it will no longer manufacture AI chips at advanced process nodes of seven nanometers or smaller. I Photo: TSMC

TSMC has informed Chinese customers that it will no longer manufacture AI chips at advanced process nodes of seven nanometers or smaller, the report said.

Any future supply of such semiconductors to Chinese customers will be subject to an approval process likely to involve Washington, according to two of the sources cited in the report.

"TSMC does not comment on market rumors. TSMC is a law-abiding company and is committed to complying with all applicable rules and regulations, including export controls," the company said in a statement.

The U.S. Department of Commerce did not immediately respond to a Reuters request for comment.