On November 11, 2024, TSMC reportedly suspended its sub-7nm process services to China's AI and GPU chipmakers following the Huawei "chip controversy," triggering widespread industry impacts and potential order transfers.

TSMC has informed its AI chip customers in mainland China via an official email that it will suspend the supply of all chips manufactured using 7nm and more advanced processes to AI/GPU customers in the region,

This directive targets chips of seven nanometre (nm), or more advanced designs powering AI accelerators and graphics processing units (GPUs).

TSMC has reportedly notified Chinese customers that shipments of AI-related chips made with 7nm or below processes will be halted. Additionally, any AI chip projects initiated after November 11 must be approved by the US Department of Commerce and other relevant agencies.

It turns out that TSMC did not voluntarily stopped supply of advanced AI processors, it was told to by the American government.

The US Department of Commerce ordered TSMC to stop supplying advanced chips used to support AI workloads to Chinese companies.

TSMC has announced suspension of production of its most advanced AI chips to China effective Monday, on geopolitical tensions between the West and the East. The Taiwan Semiconductor Manufacturing Company (TSMC) notified its Chinese chip design companies of the suspension as the US continues to thwart China’s AI ambitions.

Chinese media reports that TSMC has formally notified its Chinese AI chip customers via email that, starting November 11 — known as Singles' Day in China — it will cease supplying advanced 7nm and below process technology to Chinese AI and GPU clients.