NEW YORK: The United States on Monday (Nov 11) ordered chipmaker TSMC to halt shipments of advanced chips to Chinese customers that are often used in artificial intelligence applications, according to a person familiar with the matter.
The Commerce Department sent a letter to TSMC imposing export restrictions on certain sophisticated chips, 7-nanometer or larger in design, destined for China and that power the AI accelerator and graphics processing units (GPUs). ), the person said.
The U.S. order, which is being reported for the first time, comes just weeks after TSMC informed the Commerce Department that one of its chips had been found in a Huawei AI processor, as Reuters reported last month.
Technology research firm Tech Insights had taken apart the product, revealing the TSMC chip and an apparent violation of export controls.
Huawei, at the center of the U.S. action, is on a restricted trade list, which requires suppliers to obtain licenses to ship goods or technology to the company. Any license that could help Huawei’s AI efforts would likely be denied.
TSMC suspended deliveries to China-based chip designer Sophgo after its chip matched that found on the Huawei AI processor, sources told Reuters last month.
Reuters could not determine how the chip ended up on Huawei’s Ascend 910B, released in 2022, considered the most advanced AI chip available from a Chinese company.
The latest crackdown hits many more companies and will allow the United States to assess whether other companies are diverting chips to Huawei for its AI processor.
Following that letter, TSMC informed affected customers that it was suspending chip shipments starting Monday, the person said.
The Commerce Department declined to comment.
