TSMC is halting shipments of 7nm and smaller chips to Chinese companies developing AI and GPU tech, aligning with US export regulations to avoid penalties.
This decision comes after TSMC tipped off US officials regarding a potential circumvention of export controls by a Chinese customer, Sophgo, linked to Huawei.
The move aims to ensure compliance with US export restrictions, showcasing TSMC's caution against allegations of insufficient efforts to limit advanced tech access to China.
While shipments for high-performance computing and AI products are affected, TSMC will continue to supply 7nm chips for other applications, minimizing overall revenue impact.
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