US Ordered TSMC To Stop Exporting 7nm Chips to China

The US Department of Commerce ordered TSMC to stop supplying advanced chips for AI workloads to Chinese companies. The restrictions cover 7nm and more advanced components used in AI accelerators and GPUs.

In late October, TSMC was forced to stop shipping chips made for a China-based customer after discovering the components ended up on a Huawei processor. US sanctions bar Huawei from importing advanced 5G and AI chips.

The new controls impact more Chinese companies and will enable the US to determine if other customers are diverting chips for Huawei’s AI processor. In October 2023, the DoC released new curbs on selling AI chips to China to close loopholes after chip export restrictions were put in place in 2022.

Last month, TSMC raised its revenue growth forecast for the full year to 30% after recording a 54.2% year-on-year increase in net profit in Q3. It reported October sales rose 29.2% to TWD314.2 billion ($9.7 billion).