Taiwan Semiconductor Manufacturing Co (TSMC) is reportedly stopping the production of advanced AI chips for Chinese chip design companies.
As per the report by FT, the suspension started at the beginning of this week. This suspension halts the production of chips manufactured at nodes of seven nanometers or smaller.
The U.S has introduced a range of rules to limit the export of high-tech GPU chips to China. These chips are crucial for artificial intelligence, and Washington is concerned that China could use them to create bioweapons or carry out major cyberattacks as per the report.
As per the report of FT, further supply of these advanced AI chips may require approval, potentially involving the U.S government.
The move to limit exports of advanced chips to China comes as the U.S Department of Commerce is investigating how a chip made by a Taiwanese company ended up in a product from China’s highly restricted company, Huawei.
