The US has banned TSMC from exporting advanced AI chips to China since November 10, affecting many companies and Huawei's AI efforts.
According to Reuters, the US Department of Commerce has sent a letter to Taiwan Semiconductor Manufacturing Corporation (TSMC) requesting that it comply with new export regulations for AI accelerator chips and GPUs to the Chinese market. Accordingly, the company must temporarily stop supplying advanced chips, specifically chips with designs of 7 nanometers or higher, commonly used in AI applications, to Chinese customers, starting Monday, November 11.
The export ban was announced after TSMC reported to the US Department of Commerce that one of its chips had been found in Huawei's AI processor. The incident was revealed by technology research firm Tech Insights, which conducted product testing and found that TSMC's chips violated export control regulations.
Huawei is now at the center of trade restrictions from the US. The company has been placed on a trade blacklist that requires suppliers to obtain a license to export goods or technology.
Any license to support Huawei’s AI efforts is unlikely to be approved. TSMC also previously suspended business with Sophgo, a Chinese chip design company, after discovering that its chips matched those found in Huawei’s AI processors.
Reuters has not yet determined how TSMC's chips ended up in Huawei's Ascend 910B processor, which is expected to be China's most advanced AI chip, due out in 2022. The clampdown is not just aimed at Huawei, but also allows the US to assess whether other companies are shifting chip supplies to Huawei.
How TSMC's chips ended up in Huawei's Ascend 910B processor, which is considered China's most advanced AI chip, remains a mystery.
Since receiving the order from the US Department of Commerce, TSMC has informed affected customers that it will suspend chip shipments starting next Monday. The US Department of Commerce has declined to comment on the matter.
In a statement, Taiwan's Ministry of Economic Affairs said TSMC has been in regular discussions with the government on export control issues and is committed to complying with domestic and foreign regulations, and referred specific questions to TSMC for direct handling.
