US Orders Taiwan Semiconductor Manufacturing Co to Stop Sending Advanced AI Chips to China

Understanding the Recent US Order Against TSMC

The US has mandated that Taiwan Semiconductor Manufacturing Co. (TSMC) stop sending advanced chips, particularly designed for AI applications, to Chinese customers. The Commerce Department established export restrictions targeting sophisticated chips with designs of 7 nanometers or more. This significant clampdown comes after TSMC disclosed to US authorities that one of its chips had been integrated into a Huawei AI processor.

Broader Implications for AI Technologies

• The latest restrictions emphasize the rising scrutiny on companies like Sophgo and Huawei.
• The US has communicated that any license aiding Huawei's AI efforts will likely be rejected.
• This action aims to prevent Chinese companies from gaining access to advanced AI technologies from the U.S..

TSMC has conveyed to its clients that shipments of these chips will be suspended as of Monday, reflecting the urgency and seriousness of the situation. China's Ijiwei reported that enforcement extends to 7 nanometer or below chips for AI applications.

Legislative Responses and Future Outlook

Both Republican and Democratic lawmakers have expressed dissatisfaction with the current export control measures. There is an ongoing discussion within the US government regarding updates to tech export regulations and the need for stringent actions against China's semiconductor ambitions.

In previous instances, the Commerce Department had issued similar directives to NVIDIA and AMD, restricting their export capabilities for chips linked to AI technologies destined for China. With proposals for adding over 120 Chinese firms to the restricted list, future regulatory actions could strengthen the US position in the global tech competition.