TSMC stops supplying advanced AI chips to China

Semiconductor giant TSMC will stop supplying advanced AI chips to Chinese partners from next Monday (November 11).

The announcement was made by three sources close to the Financial Times today (November 8). According to these sources, TSMC, the world's largest contract chipmaker, has told its Chinese customers that it will no longer supply components for manufacturing advanced AI chips measuring 7 nanometers or smaller.

TSMC stops supplying advanced AI chips measuring 7 nanometers or smaller to China.

Any future supplies of semiconductors by TSMC to Chinese customers would be subject to an approval process related to Washington's trade sanctions against Beijing, the sources said.

"TSMC does not comment on market rumors. We are a law-abiding company and are committed to complying with all applicable rules and regulations, including applicable export controls," a TSMC spokesperson said.

TSMC said shortly before that its investment plans in the US have not changed. The world's largest contract chipmaker will maintain its investment plans in the US after Donald Trump was elected President.

TSMC, one of the main suppliers of components to companies like Apple and Nvidia, is currently investing $65 billion (US) in a new facility in Arizona.

In April, TSMC’s U.S. subsidiary received $6.6 billion in subsidies under a preliminary agreement with the U.S. Commerce Department to support advanced semiconductor manufacturing in Phoenix, Arizona. TSMC, Global Foundries and other chipmakers will receive final allocations from the Biden administration’s Science and Chips Act, according to two people familiar with the matter.

TSMC has seen its stock price rise sharply this year, largely due to booming demand for AI. However, Mr. Trump previously criticized Taiwan (China) during the election campaign, accusing it of stealing American semiconductor business and suggesting that tariffs should be imposed on imports from Taiwan (China).

Source: https://www.baogiaothong.vn/tsmc-ngung-cung-cap-chip-ai-tien-tien-cho-trung-quoc-192241108210536055.htm