Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, has announced that starting November 11, 2024, it will cease supplying 7-nanometer and smaller semiconductors to Chinese clients producing artificial intelligence (AI) chips and graphics processing units (GPUs). This decision aligns with U.S. sanctions aimed at preventing China’s Huawei Technologies from indirectly procuring advanced chips through third parties. Despite this restriction, TSMC will continue to supply these advanced chips to Chinese manufacturers for automotive and smartphone applications. The company emphasized its commitment to legal compliance, stating it strictly adheres to all relevant laws and export control regulations. This move is expected to significantly impact Chinese AI chipmakers, including Alibaba’s T-Head, Baidu’s Kunlunxin, and Horizon Robotics, who have relied on TSMC’s advanced manufacturing capabilities.

MENAFN10112024000159011032ID1108870550