TSMC Suspends Advanced Chip Shipments to Chinese Manufacturers: Impact on Global Semiconductor Industry

TSMC Suspends Advanced Chip Shipments to Chinese Manufacturers: Impact on Global Semiconductor Industry

TSMC Halts Advanced Chip Shipments to Chinese Companies

Source: TechCrunch

Overview of the Situation

The Taiwan Semiconductor Manufacturing Company (TSMC) has been ordered by the US Department of Commerce to stop shipments of advanced chips to Chinese clients. This comes after a discovery of TSMC technology in a Huawei processor.

Impact on Huawei

Huawei is currently facing significant trade restrictions imposed by the US, leading to concerns that other companies may be funneling advanced chips to Huawei, still leveraging US technology despite the restrictions.

Details of Halting Shipments

  • TSMC has notified its affected customers of the halt in shipments, effective starting Monday.
  • The suspension specifically targets chips used for artificial intelligence applications, an area already restricted by the US government concerning exports to China.

TSMC's Compliance Commitment

In response to the situation, TSMC has publicly stated its commitment to adhere to all export control laws and regulations, ensuring compliance with the latest directives from the US authorities.