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U.S. Orders Halt of AI Chips from Taiwan to China

One of TSMC's factories in Taichung's Central Taiwan Science Park. Credit: CC/Briaxis F. Mendes

The U.S. Department of Commerce ordered the Taiwan Semiconductor Manufacturing Co. (TSMC) to halt all shipments to mainland China of advanced chips that are capable of AI applications, starting on Monday, Nov. 11, according to Reuters. A letter was sent to notify TSMC that the U.S. was imposing export restrictions on certain sophisticated chips, of 7 nanometer or more advanced designs, destined for China that power AI accelerators and graphics processing units (GPU).

Reuters noted, “The U.S. order, which is being reported for the first time, comes just weeks after TSMC notified the Commerce Department that one of its chips had been found in a Huawei AI processor, as Reuters reported last month. Tech research firm TechInsights had taken apart the product, revealing the TSMC chip and apparent violation of export controls…. Reuters could not determine how the chip ended up on Huawei’s Ascend 910B, released in 2022, viewed as the most advanced AI chip available from a Chinese company.

“Huawei, at the center of the U.S. action, is on a restricted trade list, which requires suppliers to obtain licenses to ship any goods or technology to the company. Any license that could aid Huawei’s AI efforts would likely be denied….

“‘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,’ Taiwan’s economy ministry said, in a statement to Reuters, referring specific questions to TSMC.”

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