TSMC will no longer manufacture AI chips at advanced process nodes of 7 nanometers or smaller for Chinese firms, per reports.

Taiwan Semiconductor Manufacturing Company has notified Chinese chip design companies that it will suspend production of their most advanced artificial intelligence chips, as Washington continues to impede Beijing’s AI ambitions.

Taiwan Semiconductor Manufacturing Co (TSMC) has notified Chinese chip design companies that it is suspending production of their most advanced AI chips from Monday, the Financial Times reported, citing three people familiar with the matter.

TSMC has told mainland Chinese clients it will no longer produce advanced chips for them, according to person briefed on the notice.

The US has imposed a raft of measures aimed at restricting the shipment of advanced GPU chips - which enable AI - to China to hobble its artificial intelligence capabilities, which Washington fears could be used to develop bioweapons and launch large-scale cyberattacks.