Extreme Investor Network is here to bring you the latest and most insightful information in the world of finance. Today, we bring you news about the U.S. ordering Taiwan Semiconductor Manufacturing Co (TSMC) to halt shipments of advanced chips to Chinese customers for use in artificial intelligence applications.
The Department of Commerce sent a letter to TSMC imposing export restrictions on certain sophisticated chips, specifically those with 7 nanometer or more advanced designs, destined for China to power AI accelerator and graphics processing units (GPU).
This order comes on the heels of TSMC notifying the Commerce Department that one of its chips was found in a Huawei AI processor. This discovery led to the suspension of shipments to China-based chip designer Sophgo, after their chip matched the one found in the Huawei AI processor.
The latest clampdown by the U.S. not only impacts TSMC but also many more companies in the industry. It will allow the U.S. to assess whether other companies are diverting chips to Huawei for its AI processor.
As a result of the export restrictions, TSMC informed affected clients that it was suspending chip shipments starting Monday. TSMC emphasized its commitment to complying with all applicable rules and regulations, including export controls.
In addition to TSMC, the Commerce Department has also sent is-informed letters to other companies like Nvidia and AMD, restricting their ability to export top AI-related chips to China, along with restrictions to chip equipment makers like Lam Research, Applied Materials, and KLA to restrict tools for making advanced chips to China.
The U.S. has faced delays in updating rules on tech exports to China, with new rules drafted by the Biden administration still pending release. Despite concerns, both Republican and Democratic lawmakers are pushing for stricter enforcement of export controls to China.
Stay tuned to Extreme Investor Network for more updates on this evolving situation in the finance and tech industry.