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 usually utilized in synthetic intelligence purposes beginning Monday, based on an individual conversant in 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 models (GPU), the individual stated.
The U.S. order, which is being reported for the primary time, comes simply weeks after TSMC notified the Commerce Division that considered 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 expertise to the corporate. Any license that might support Huawei’s AI efforts would possible be denied.
TSMC suspended shipments to China-based chip designer Sophgo after its chip matched the one discovered on the Huawei AI processor, sources informed Reuters final month.
Reuters couldn’t decide how the chip ended up on Huawei’s Ascend 910B, launched in 2022, considered as probably the most superior AI chip out there from a Chinese language firm.
The newest clampdown hits many extra corporations and can permit the U.S. to evaluate whether or not different corporations are diverting chips to Huawei for its AI processor.
Because of the letter, TSMC notified affected shoppers that it was suspending shipments of chips beginning Monday, the individual stated.
The Commerce Division declined remark.
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 known as an “is knowledgeable” letter — permits the U.S. to bypass prolonged rule-writing processes to shortly impose new licensing necessities on particular corporations.
Ijiwei, a Chinese language media web site protecting the semiconductor trade, reported on Friday that TSMC notified Chinese language chip design corporations it could droop 7 nanometer or beneath chips for AI and GPU clients starting Nov. 11.
The motion comes as each Republican and Democratic lawmakers have raised issues in regards to the inadequacy of export controls on China and the Commerce Division’s enforcement of them.