TSMC to Suspend Advanced AI Chip Sales to China, Report Says

Taiwan Semiconductor Manufacturing Company is expected to begin suspending production of AI chips at advanced process nodes of 7 nanometers for its Chinese customers beginning Nov. 11, the Financial Times reported last week.

The report, which comes as the Bureau of Industry and Security looks into whether TSMC violated U.S. export controls on Huawei (see 2410230019 and 2410240011), said any future shipments of those semiconductors by TSMC to Chinese customers will need to be approved by Washington, likely through a BIS license. TSMC made the move in part to improve its internal controls amid the ongoing BIS probe and prepare for a new round of U.S. chip controls against China, the report said, which is expected before President Joe Biden leaves office.

A TSMC spokesperson declined to say whether the company is suspending advanced chips for its Chinese customers. "TSMC is a law-abiding company, and we are committed to complying with all applicable rules and regulations, including applicable export controls," the person said Nov. 8.

A BIS spokesperson declined to comment.