TSMC will stop manufacturing AI chips for Chinese companies after a warning from a Canadian firm

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As the biggest chip manufacturer in the world, TSMC gets business from big brands like Samsung, Apple, and more. Most of these companies won't encounter issues with TSMC, except some based in China.

According to Android Headlines, TSMC has stopped producing AI chips for companies from China. Sources suggest the cancellation was done to show the US government that it's "not acting against US interests." It's also speculated that the decision was made in response to Donald Trump's reappointment as US president.

For context, TSMC claimed to be ignorant that Huawei was acquiring AI chips through another company. TSMC's move to cancel production of AI chips will stifle Huawei's efforts to develop AI platforms or features, which are likely intended for the company's mobile devices and the HarmonyOS. It will also affect companies planning to use such chips for AI-based developments, such as Baidu.

Considering the trade war between the US and China, more sanctions and bans could happen. Mind you, we're no experts on the topic, so we'll refrain from saying more. But what do you think? Share your thoughts in the comments on our Facebook page and stay tuned to TechNave for more news like this.