The United States has instructed Taiwan Semiconductor Manufacturing Co (TSMC) to halt the shipment of certain advanced chips to China starting Monday.

This directive comes from the Department of Commerce and involves export restrictions on chips with designs of 7 nanometers or more advanced, commonly used in AI.

The move follows reports that TSMC chips were found in Huawei’s AI processors.

These findings suggest a possible breach of U.S. export controls.

Huawei is on the US-restricted trade list, requiring suppliers to obtain licenses for trading goods or technology, particularly those used in AI.

Recent TSMC developments