Taiwan Semiconductor Manufacturing Company (TSMC) has suspended shipments of advanced chips to Chinese companies following a US Department of Commerce order.
The move comes after one of TSMC's chips was found inside a Huawei processor. The US government issued this directive as part of an investigation into whether companies are secretly supplying chips to Huawei, which is already facing heavy trade restrictions from the US.
The halt in shipments is particularly focused on advanced chips used for artificial intelligence (AI) applications. These chips are central to the development of AI technology, an area where the US has been increasing its export restrictions.
According to Reuters, the decision aims to prevent any further diversion of these sensitive technologies to companies like Huawei.
TSMC informed its affected clients that the suspension would take effect starting Monday. The company has stated that it is fully committed to following all relevant export rules and regulations.
US Lawmakers Demand Transparency as Export Controls on Chinese Tech Tighten
A spokesperson emphasized, "We are committed to complying with all applicable rules and regulations, including export controls."
This pause in shipments follows growing concerns in the US about China's access to cutting-edge technology, especially in the AI sector. In response to the issue, US lawmakers have intensified their calls for transparency from semiconductor companies, urging them to disclose sales to China.
Republican Representative John Moolenaar and Democratic Representative Raja Krishnamoorthi have sent letters to companies such as KLA, Lam Research, Applied Materials, Tokyo Electron, and ASML, requesting more information about their business dealings with China.
The US government has been tightening controls on exports to China, especially concerning technology that could contribute to China's military development.
