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Home » US ordered TSMC to halt shipments to China of chips used in AI: Source

US ordered TSMC to halt shipments to China of chips used in AI: Source

The United States government has reportedly ordered Taiwan Semiconductor Manufacturing Company (TSMC) to halt shipments of chips to China that are used in artificial intelligence (AI) applications. The decision comes amid growing concerns about national security and the use of advanced technology by Chinese companies.

According to a source familiar with the matter, the US government has told TSMC to stop supplying chips to Chinese companies that are involved in developing AI technology. This move is seen as a way to prevent China from gaining access to crucial components that could be used in military applications or surveillance systems.

TSMC is one of the world’s largest chip manufacturers and plays a key role in the global supply chain for semiconductors. The company’s cutting-edge technology is in high demand, particularly for AI applications that require powerful processors and advanced capabilities.

The US government’s decision to intervene in TSMC’s supply chain reflects growing tensions between the US and China over technology and national security issues. The Trump administration has previously taken steps to restrict the export of US-made technology to Chinese companies, citing concerns about intellectual property theft and national security risks.

The move to halt shipments of chips to China could have significant implications for the global tech industry, as Chinese companies rely heavily on TSMC for advanced semiconductor components. It could also impact the development of AI technology in China, which has been a priority for the Chinese government in recent years.

It remains to be seen how TSMC will respond to the US government’s directive and what impact it will have on the company’s business operations. The decision highlights the complex interplay between technology, geopolitics, and national security concerns in the modern world. As AI continues to play a growing role in various industries, the use of advanced semiconductor technology is likely to remain a key point of contention between the US and China.