TSMC will halt production of advanced AI chips in China from Monday, the FT reported

(Reuters) – Taiwan Semiconductor Manufacturing Company has informed Chinese chipmakers that it will halt production of its 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 be able to make AI chips in advanced areas of seven nanometers or smaller, the report said.

Any future supply of those semiconductors by TSMC to Chinese customers would be subject to an approval process likely to involve Washington, two of the three people cited said, according to the report.

“TSMC does not comment on market rumors. TSMC is a law-abiding company and we are committed to complying with all applicable laws and regulations, including applicable export controls,” the company said in a statement.

The US Commerce Department did not immediately respond to a Reuters request for comment.

(Reporting by Rishi Kant in Bengaluru; Editing by Mrigank Dhaniwala)