US orders Taiwanese company to stop selling AI chips to China - Reuters

According to the source, the US Department of Commerce sent a letter to TSMC. The letter states that it will impose export restrictions on certain complex chips with a process technology of 7 nanometers or more destined for China, which are used in artificial intelligence (AI) accelerators and graphics processing units (GPUs).

The US order, which is reported for the first time, comes just weeks after TSMC notified the Department of Commerce that one of its chips was found in a Huawei AI processor. The research firm Tech Insight reportedly took apart the product, found the TSMC chip and an apparent export control violation.

Reuters writes that Huawei is on the US list of trade restrictions, which requires suppliers to obtain licenses to supply any goods or technologies of the company. In this regard, any license that could help Huawei's AI efforts is likely to be rejected.

According to a Reuters source, as a result of receiving the letter, TSMC informed affected customers that it would stop supplying chips starting Monday. The US Department of Commerce declined to comment.

“TSMC has had regular discussions with the government on export control issues and has made it clear that it will comply with domestic and international regulations,” the Taiwanese Ministry of Economic Affairs said.

According to the newspaper, the latest measures have affected even more companies and will allow the US to assess whether other companies are diverting Huawei chips for its AI processor.

In particular, last month, sources told the agency that TSMC suspended supplies to Chinese chipmaker Solhgo after its chip matched the one found in Huawei AI processor.

In early November, the US imposed a $500 thousand fine on the New York-based GlobalFoundries. The measure was imposed because the company sent chips to an affiliate of the Chinese manufacturer SMIC.