The U.S. Department of Commerce has ordered Taiwan Semiconductor Manufacturing Company (TSMC) to halt shipments of advanced chips to Chinese customers, according to a Reuters report.
The move comes after a TSMC-manufactured chip was found in a Huawei processor. Huawei faces significant trade restrictions from the U.S., prompting the government to investigate whether other companies are diverting chips to the Chinese tech giant.
TSMC has reportedly notified affected customers that it will be halting shipments of the advanced chips, which are often used for artificial intelligence applications, starting Monday. This area has already seen chip export restrictions from companies like Nvidia.
In a statement, TSMC said it is “committed to complying with all applicable rules and regulations, including applicable export controls.”
The order represents the latest escalation in the U.S.-China tech tensions, with the government closely monitoring the flow of advanced semiconductor technology. The pause on shipments will allow authorities to determine if other Chinese firms are circumventing the restrictions on Huawei.
