TSMC (TSM, Financial) has informed several Chinese clients that it will temporarily halt the production of their artificial intelligence (AI) and high-performance computing (HPC) chips. This move underscores the company's efforts to comply with U.S. export controls. The affected clients are primarily involved in high-performance computing, graphics processing units (GPU), and AI applications, utilizing advanced chip manufacturing technologies of 7 nanometers or beyond. Notably, this pause does not impact the production of chips related to mobile, communication, and connectivity using the same technology.
The financial impact on TSMC's overall revenue is expected to be minimal. The company's decision is aimed at ensuring compliance with U.S. export regulations, unrelated to the U.S. elections this week. TSMC has also advised certain Chinese clients with higher computing needs to first seek confirmation from the U.S. Department of Commerce regarding the viability of their chip designs for production at TSMC.
TSMC remains committed to adhering to all relevant regulations and did not comment on market speculation.
