(Reuters) -Taiwan Semiconductor Manufacturing Company has notified Chinese chip design firms that it will suspend production of their advanced AI chips from Monday, the Financial Times reported on Friday, citing three people familiar with the matter.
TSMC has told Chinese customers that it will no longer produce AI chips on advanced process nodes of seven nanometers or smaller, the report said.
Any future supplies of such semiconductors by TSMC to Chinese customers would be subject to an approval process that would likely also involve Washington, two of the three people quoted said, the report said.
“TSMC does not comment on market rumors. TSMC is a law-abiding company and we are committed to complying with all applicable rules and regulations, including applicable export controls,” the company said in a response.
The US Commerce Department did not immediately respond to a Reuters request for comment.
(Reporting by Rishi Kant in Bengaluru; Editing by Mrigank Dhaniwala)
