The United States has directed Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) to stop shipping certain advanced chips to Chinese clients, effective Monday, according to a Reuters exclusive.
The US Department of Commerce informed TSMC that export restrictions apply to chips of 7-nanometer or more advanced designs often used in artificial intelligence and graphics processing units.
This order comes shortly after TSMC reported that one of its chips was found in a Huawei AI processor, a potential breach of American export controls, according to a previous Reuters report.
This latest move expands restrictions, allowing the States to assess other companies possibly supplying chips to Huawei.
Huawei, on a US restricted trade list, faces limitations on obtaining AI-related goods without a license, which would likely be denied.