By Karen Freifeld and Fanny Potkin
NEW YORK/SINGAPORE (Reuters) -The U.S. ordered Taiwan Semiconductor Manufacturing Co to halt shipments of superior chips to Chinese language clients which are typically utilized in synthetic intelligence functions beginning Monday, based on an individual aware of the matter.
The Division of Commerce despatched a letter to TSMC imposing export restrictions on sure refined chips, of seven nanometer or extra superior designs, destined for China that energy AI accelerator and graphics processing items (GPU), the particular person stated.
The U.S. order, which is being reported for the primary time, comes simply weeks after TSMC notified the Commerce Division that certainly one of its chips had been present in a Huawei AI processor, as Reuters reported final month. Tech analysis agency Tech Insights had taken aside the product, revealing the TSMC chip and obvious violation of export controls.
Huawei, on the middle of the U.S. motion, is on a restricted commerce listing, which requires suppliers to acquire licenses to ship any items or know-how to the corporate. Any license that might assist Huawei’s AI efforts would probably be denied.
TSMC suspended shipments to China-based chip designer Sophgo after its chip matched the one discovered on the Huawei AI processor, sources instructed Reuters final month.
Reuters couldn’t decide how the chip ended up on Huawei’s Ascend 910B, launched in 2022, seen as probably the most superior AI chip accessible from a Chinese language firm.
The most recent clampdown hits many extra firms and can enable the U.S. to evaluate whether or not different firms are diverting chips to Huawei for its AI processor.
On account of the letter, TSMC notified affected purchasers that it was suspending shipments of chips beginning Monday, the particular person stated.
The Commerce Division declined remark.
“TSMC has had common discussions with the federal government on export management points and has made it clear that it’ll adjust to home and worldwide rules,” Taiwan’s financial system ministry stated in an announcement to Reuters, referring particular inquiries to TSMC.
A spokesperson for TSMC additionally declined to remark past saying it was a “law-abiding firm…dedicated to complying with all relevant guidelines and rules, together with relevant export controls.”
The Commerce Division communication – often called an “is knowledgeable” letter – permits the U.S. to bypass prolonged rule-writing processes to rapidly impose new licensing necessities on particular firms.
Ijiwei, a Chinese language media website protecting the semiconductor trade, reported on Friday that TSMC notified Chinese language chip design firms it might droop 7 nanometer or beneath chips for AI and GPU clients starting Nov. 11.
