US Orders TSMC To Stop Shipping Chips Used in AI Applications to China

The US has reportedly halted TSMC's advanced chip shipments to China after discovering their chips in Huawei's AI processors.

TSMC (Photo Credits: Wikimedia Commons)

New Delhi, November 11: The US has reportedly ordered Taiwan Semiconductor Manufacturing Company (TSMC) to stop shipping advanced chips used in artificial intelligence (AI) applications to China. The order from the United States, which is being mentioned for the first time, has emerged a few weeks after TSMC informed the Commerce Department that one of its chips was discovered in an AI processor made by Huawei.

The technology research company Tech Insights has examined the product closely and discovered that it contains a chip made by TSMC. Their investigation suggests that this may be a violation of export control regulations. According to reports, Huawei is currently on a restricted trade list. Companies wanting to supply goods or technology to Huawei must first obtain licenses. Apple Working on Its Own WiFi 7 Chips for iPhone 17 Series and Above: Report.

As per a report of Reuters, the US has instructed TSMC to halt shipments to China of chips that are designed for AI applications. The Department of Commerce has sent a letter to TSMC, placing export restrictions on specific chips.

These chips, which are designed with 7 nanometer technology or more, are destined for  China and are used to power AI accelerators and graphics processing units (GPUs). Taiwan's economy ministry reportedly said, TSMC has been having regular conversations with the government about export control matters. The company has made it clear that it intends to follow local and international rules and regulations. Sam Altman-Run OpenAI Collaborating With Broadcom and TSMC, Likely To Build Its 1st AI Chip by 2026; Check Details.

According to reports, TSMC has stopped sending shipments to Sophgo, a chip designer based in China. This decision came after it was discovered that one of Sophgo's chips was the same as the one found in a Huawei AI processor. Ijiwei, a Chinese media outlet that focuses on the semiconductor industry, reported that TSMC has informed Chinese chip design companies about its decision to stop supplying chips that are 7 nanometers or below from November 11.

(The above story first appeared on LatestLY on Nov 11, 2024 12:00 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).

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