Taiwan Semiconductor Manufacturing Company (TSMC) has suspended AI chip production for Chinese clients after discovering Huawei used its chips in violation of US trade sanctions.
The policy change stems from TSMC wanting to align its operations with US interests, especially after a Canadian firm revealed illegal use of its chips by Huawei.
Clients in China must now undergo an approval process involving the US government for AI chips 7 nanometers and smaller, which could stifle their AI advancements.
This decision sends a strong message, as TSMC acknowledges the potential significant impact of these restrictions on the AI projects of companies such as Baidu.
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