The U.S. ordered Taiwan Semiconductor Manufacturing Co to halt shipments of advanced chips to Chinese customers that are often used in artificial intelligence applications starting Monday, according to a person familiar with the matter.
TSMC will stop providing Chinese customers with some of its most advanced AI chips, per reports. The US has been clamping down on China's access to advanced technology.
Taiwan Semiconductor Manufacturing Company has notified Chinese chip design companies that it is suspending production of their advanced AI chips from Monday, Financial Times reported on Friday, citing three people familiar with the matter.
Taiwan Semiconductor's AI revenue has boomed this year.
These companies take advantage of the growing adoption of AI hardware and software.
Chipmaker TSMC's investment plan in the United States remains unchanged, the company said, responding to a question on the election of Donald Trump as the next U.S. president.
Taiwan Semi is one of the few high-growth tech stocks with a price-to-earnings multiple below its projected growth rate.
The apparent use of TSMC circuitry, believed to have first routed through a Chinese chip firm, shows the difficulties for the U.S. in enforcing a tech crackdown.
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The company got a big green light on its plans for geographic expansion.
AI chip demand is booming for the semiconductor foundry's services.
If you have a device with a microchip – whether it be a computer, a data center, a smartphone, or any other similar tool – it is more likely than not that a Taiwanese firm manufactured the critical component. Even more impressively, it is also more likely than not that it was made by the Taiwan Semiconductor Manufacturing Company (NYSE: TSM).