Following the discovery of a Taiwan Semiconductor Manufacturing Company (TSMC) chip in a Huawei processor, the U.S. Department of Commerce has directed TSMC to suspend its shipments of advanced chips to Chinese customers.
According to a Reuters report, the pause is intended to give the U.S. government time to investigate if other companies are funneling these chips to Huawei despite existing trade restrictions.
Huawei has been under stringent U.S. trade restrictions, particularly concerning advanced technology. The targeted chips, often used in artificial intelligence applications, fall under an area the U.S. has been closely monitoring, with previous limitations placed on companies like Nvidia to prevent high-tech chip exports to China.
TSMC has informed affected clients that it will halt shipments starting Monday. In a statement to Reuters and other media outlets, TSMC reaffirmed its commitment to adhering to “all applicable rules and regulations, including export controls.”
