TSMC Halts Advanced Chip Shipments to Chinese Firms Over Huawei Proxy Concerns

TSMC is reportedly ending shipments of its 7nm and more advanced process nodes to several Chinese companies amid concerns they are acting as proxies for Huawei, potentially violating trade sanctions. According to reports, TSMC has notified these Chinese customers via email that shipments of 7nm and below chips will be suspended starting November 11th. This primarily affects companies using TSMC's technology for AI, smartphone, and automobile chips. The ban will remain until TSMC and the U.S. Department of Commerce establish clearer control measures. Companies outside these categories can still have chips produced by TSMC after obtaining a license. While this decision may impact TSMC's revenue, increased orders from US firms are expected to offset any losses. It's suspected that these Chinese firms were acting as intermediaries for Huawei to access advanced chip technology. While no concrete evidence has been presented, Huawei has reportedly attempted to recruit TSMC engineer…