Reuters reports that the U.S. Department of Commerce has ordered Taiwan Semiconductor Manufacturing Company to stop shipping advanced chips to Chinese customers after chips made by the company were discovered in Huawei processors. I ordered him to do it.
Huawei faces significant trade restrictions from the United States, so the suspension should allow the government to determine whether other companies are diverting chips to Huawei.
TSMC has reportedly notified affected customers that shipments will be suspended starting Monday. The advanced chips being targeted are often used in artificial intelligence applications, an area where the U.S. already restricts chip exports from companies such as Nvidia.
TSMC said in a statement provided to Reuters and other publications that it is “committed to complying with all applicable rules and regulations, including applicable export controls.”