Starting Monday, TSMC will cease the supply of its advanced AI chips, specifically those at process nodes of 7 nanometers or smaller, aimed at Chinese firms.
Future supplies to Chinese companies will now be governed by an approval process that will likely require consent from Washington, indicating increased regulatory scrutiny.
Despite stopping sales of advanced AI chips to China, TSMC is not expected to suffer any revenue loss, highlighting its strong market positioning and diversified customer base.
The decision by TSMC reflects a proactive stance to mitigate supply chain disruptions before the anticipated implementation of stricter US export controls on chip supplies to China.
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