After a chip manufactured by Taiwan Semiconductor Manufacturing Company was found inside a Huawei processor, the US Department of Commerce has ordered the company to halt shipments of advanced chips to Chinese customers, according to a report in Reuters.
Huawei faces significant trade restrictions from the US, so the pause on shipments is supposed to allow the government to determine whether other companies are diverting chips to Huawei.
TSMC reportedly notified affected customers that it will be halting shipments starting Monday. The advanced chips being targeted are often used for artificial intelligence applications — an area where the US has already been restricting chip exports from companies like Nvidia.
In a statement provided to Reuters and other publications, TSMC said it is “committed to complying with all applicable rules and regulations, including applicable export controls.”