U.S. Orders TSMC to Halt Advanced AI Chip Exports to China
The decision follows the discovery of TSMC chips in Huawei products, prompting concerns over export control compliance.
- The U.S. Department of Commerce has directed TSMC to stop exporting AI chips made with 7-nanometer technology or smaller to Chinese companies.
- This move is part of broader U.S. efforts to restrict China's access to advanced semiconductor technology amid ongoing trade tensions.
- The halt in shipments was prompted by the discovery of a TSMC chip in a Huawei AI processor, raising concerns about export regulation breaches.
- China's semiconductor index surged as investors bet on increased self-reliance in response to the export restrictions.
- Taiwan's regulations also prevent TSMC from producing its most advanced 2-nanometer chips overseas, keeping core technology within the country.