TSMC (NYSE:TSM) Is Set to Halt Advanced AI Chip Production for Chinese Customers
Market News

TSMC (NYSE:TSM) Is Set to Halt Advanced AI Chip Production for Chinese Customers

Story Highlights

Taiwan Semiconductor Manufacturing Co. has reportedly notified Chinese chip design companies that it will halt production of advanced AI chips starting Monday.

Apparently, Taiwan Semiconductor Manufacturing Co. (TSM) has notified Chinese chip design companies that it would halt production of advanced AI chips starting Monday, according to an exclusive Financial Times report.

The chipmaker informed its Chinese clients that it will no longer manufacture AI chips using cutting-edge process nodes of 7 nanometers or smaller, according to the report. This move aligns with U.S. efforts to restrict China’s access to advanced chips, which are critical for AI technology, amid concerns that they could be exploited for developing bioweapons or executing large-scale cyberattacks.

The U.S. Is Firm on Limiting Chip Exports to China

Earlier this month, the U.S. fined GlobalFoundries (GFS) $500,000 for unauthorized shipments to an affiliate of SMIC, a Chinese chipmaker on the U.S. blacklist. The report also stated that, moving forward, any TSMC shipments of advanced AI chips to Chinese customers will require an approval process that will likely involve the U.S. government.

TSMC Comments on the Report

A TSMC spokesperson commented on the report, stating, “TSMC does not comment on market rumors. TSMC is a law-abiding company and is committed to complying with all applicable rules and regulations, including applicable export controls.”

Is TSM a Buy, Sell, or Hold?

Analysts remain bullish about TSM stock, with a Strong Buy consensus rating based on a unanimous five Buys. Over the past year, TSM has soared by more than 100%, and the average TSM price target of $205 implies an upside potential of 1.9% from current levels.

See more TSM analyst ratings

Related Articles
TheFlyGlobalFoundries price target lowered to $50 from $55 at Deutsche Bank
TheFlyGlobalFoundries price target lowered to $48 from $50 at Susquehanna
Go Ad-Free with Our App