Export ban for TSMC

USA cuts off Chinese access to AI chips

Photo from a TSMC processor factory in Taiwan

(Bild: Taiwan Semiconductor Manufacturing Co., Ltd.)

The USA has banned a Taiwanese manufacturer from exporting microchips for artificial intelligence applications to China. Taiwan Semiconductor Manufacturing (TSMC) will not be allowed to supply modern chips to Chinese customers from Monday, an insider told Reuters. These chips are often used for AI programs.

According to the insider, the US Department of Commerce has sent a letter to TSMC imposing export restrictions on chips with structures in the seven nanometer range, among other things. The US order comes a few weeks after TSMC informed the US Department that one of its chips had been found in an AI processor from the Chinese company Huawei. However, Huawei is one of the companies that the US has imposed trade restrictions on. All sales of advanced technology goods to Huawei must therefore be licensed by the USA.

Deliveries to customers in China suspended
TSMC has already suspended deliveries to the China-based chip designer Sophgo after the AI-enabled chip was discovered in the Huawei product. Informed circles had already told Reuters last month.

The advanced TSMC chip is part of Huawei's Ascend 910B chip, which was launched in 2022. It is considered the most advanced AI chip from a Chinese company. How exactly the Taiwanese chip was able to get into the Huawei product initially remained unclear. US authorities may now investigate whether other companies are diverting chips for Huawei's AI processor. The US Department of Commerce initially declined to comment.

"TSMC has had regular discussions with the government about export controls and has made it clear that it will comply with domestic and international regulations," Taiwan's Ministry of Economic Affairs said. A TSMC spokesperson declined to comment, stating only that TSMC complies with export controls.