Taiwan Semiconductor Manufacturing Company (TSMC) has shelved plans to produce application-specific integrated circuits (ASICs) in Arizona for Chinese company Bitmain, sources say.

Pre-production efforts progressed throughout the summer, including the delivery of photolithography masks to the site.

However, the initiative was ultimately canceled.

Known for Bitcoin-mining chips, Bitmain is now shifting its focus to AI chips, creating affiliates like Sophgo to support this move.