TSMC (TSM.US)      notified several mainland China customers that it would suspend production for their AI and high-performance computing chips, suggesting that the company is stepping up efforts to ensure compliance with US export controls, Nikkei Asia reported.

The impacted Chinese chip design customers are primarily companies engaged in high-performance computing, graphics processing units (GPUs) and AI-related applications, sources divulged.

Related NewsChongqing Launches RMB100M Home Appliance Trade-in Subsidy Policy Ytd
Such companies purportedly use 7nm or more advanced chip manufacturing technology, while companies that use the technology to produce mobile, communications and connectivity-related chips are exempted. The sources said the impact on TSMC's overall revenue would be minimal.

TSMC reportedly took the above measures to avoid any violations of US export control regulations, denying relation to this week's US elections. Another source said that TSMC had informed some mainland China customers with higher computing power that they should first confirm with the US Department of Commerce whether their chip designs could be manufactured by TSMC.

The company responded that it would not comment on market rumors and that it was committed to complying with all relevant regulations.
(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

Related NewsPony AI Plans US IPO, Issuing 15M ADSs