It turns out that TSMC did not voluntarily stopped supply of advanced AI processors, it was told to by the American government.

The latest effort to curb exports of critical technologies comes after reports that a TSMC product was found inside a Huawei AI chip.

The US order comes just weeks after TSMC notified that one of its chips had been found in a Huawei AI processor.

Taiwan Semiconductor Manufacturing Company has notified Chinese chip design companies that it will suspend production of their most advanced artificial intelligence chips, as Washington continues to impede Beijing’s AI ambitions.

TSMC has reportedly notified Chinese customers that shipments of AI-related chips made with 7nm or below processes will be halted. Additionally, any AI chip projects initiated after November 11 must be approved by the US Department of Commerce and other relevant agencies.

Taiwan Semiconductor Manufacturing Co (TSMC) has notified Chinese chip design companies that it is suspending production of their most advanced AI chips from Monday, the Financial Times reported, citing three people familiar with the matter.

The move comes after chips made by Taiwan's largest producer were found in Huawei AI processors at the end of last month.

The U.S. has reportedly ordered the world’s largest chipmaker not to send its advanced artificial intelligence chips to China anymore.