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According to reports, TSMC informed Chinese clients that it would no longer produce AI chips at advanced process nodes smaller than 7 nm.
Taiwan Semiconductor Manufacturing Co. (TSMC) has notified Chinese chip design companies that it is suspending production of their most advanced AI chips from Monday, the Financial Times reported, citing three people familiar with the matter.
According to FT on Friday, TSMC, the biggest contract chipmaker in the world, informed Chinese clients that it would no longer produce AI chips at advanced process nodes that are 7 nanometres or smaller.
The United States has implemented a number of policies to limit the flow of cutting-edge GPU chips, which facilitate artificial intelligence, to China in an effort to limit its AI capabilities. Washington is concerned that these chips could be used to create bioweapons and conduct massive cyberattacks.
The United States fined New York-based GlobalFoundries $500,000 earlier this month for sending chips to a Chinese chipmaker SMIC affiliate that was on a blacklist without permission.
According to the FT report, Washington would probably be involved in the approval process for any future TSMC deliveries of the cutting-edge AI chips to Chinese consumers.
“TSMC stays silent about market rumours. As a law-abiding business, TSMC is dedicated to abiding by all relevant laws and guidelines, including any applicable export controls, the company stated.
The U.S. Department of Commerce did not immediately respond to Reuters’ request for comment.
The U.S.Department of Commerce is looking into how a chip made by the Taiwanese chipmaker ended up in a product made by China’s heavily sanctioned Huawei company, in addition to the decision to limit exports to China.