TSMC to close door on producing advanced AI chips for China from Monday

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TSMC to close door on producing advanced AI chips for China from Monday
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World’s biggest contract chipmaker acts to ensure it is in line with US restrictions on Chinese access to latest processors

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.

’s tighter rules could reset the ambitions of Chinese technology giants such as Alibaba and Baidu, which have invested heavily in designing semiconductors for their AI clouds, as well as a growing number of AI chip design start-ups that have turned to the Taiwanese group for manufacturing.

could move its production back home after pocketing billions of dollars in subsidies from Washington for building fabrication plants in the US. A person close to on its 7-nanometre level of miniaturisation, according to Bernstein Research. “Kunlun chips are now especially well-suited for large model inference and will eventually be suitable for training,” Baidu founder Robin Li told a conference last year. Li added that the group had been effective in cutting costs by designing its own chips. The people briefed on the situation said

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