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Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, told its graphics-processor and AI-accelerator clients in mainland China that the company will no longer produce advanced chips for them, according to a person familiar with the matter.
TSMC said in a notice sent earlier this week that it will stop accepting orders requiring the processing of advanced nodes at 7-nanometre or smaller from those customers starting next week, according to the source, who is an executive at a mainland chip design firm briefed on the notice. The source declined to be named because of the sensitivity of the issue.
Ijiwei.com, a Chinese news site covering the domestic semiconductor industry, first reported the news on Friday. TSMC did not immediately respond to a request for comment.
The company’s move came after a Canadian research firm said it found components made by TSMC in a Huawei Technologies 910B artificial intelligence (AI) processor, suggesting a possible breach of US export controls.

TSMC denied any wrongdoing and pledged to work with the US Commerce Department to investigate the issue. Huawei said it “has not produced any chips via TSMC since the US Department of Commerce implemented its amended foreign direct product rule that targeted Huawei in 2020”.
The discovery of TSMC chips in a Huawei product has raised new questions about the effectiveness of US sanctions against the Shenzhen-based tech giant, while casting a shadow over the relationship between TSMC and its mainland customers.
TSMC has since suspended shipments to Xiamen-based graphics-processor developer Sophgo, according to a Reuters report. In response, the mainland company said it “has never engaged in any direct or indirect business relationship with Huawei”.
TSMC’s latest move appears to be the easiest and most efficient way to avoid compliance risks, according to a general manager at a mainland memory chip controller company that had business relationships with the Taiwanese firm.
The person added that TSMC can afford to lose small mainland customers for its advanced processing business, as Washington’s restrictions have already barred many of the larger Chinese companies from employing its service.
Mainland China accounted for 11 per cent of TSMC’s third-quarter revenue, trailing North America, which contributed 71 per cent to its total revenue in the past quarter, according to data from Visible Alpha of S&P Global Market Intelligence.
As the US tightens its grip on China’s access to advanced chips, semiconductor firms have become more cautious in ensuring that they follow Washington’s direction. US chip tool makers Applied Materials and Lam Research have asked suppliers to stop using certain components imported from China, The Wall Street Journal reported Monday.
TSMC, a supplier to major US companies like Apple and Nvidia, said after President Donald Trump’s election victory that its investment plan in the country remains unchanged, Reuters reported. The Taiwanese firm is spending US$65 billion on building new factories in the US state of Arizona.


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TSMC has told mainland Chinese clients it will no longer produce advanced chips for them, according to person briefed on the notice


TSMC has told mainland Chinese clients it will no longer produce advanced chips for them, according to person briefed on the notice.


TSMC halts advanced chip orders from mainland China after US export curbs evasion: source

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}TSMC has told mainland Chinese clients it will no longer produce advanced chips for them, according to person briefed on the notice

TSMC has told mainland Chinese clients it will no longer produce advanced chips for them, according to person briefed on the notice