India, Nov. 12 -- Reports suggest that TSMC has notified its Chinese clients of a temporary suspension on shipments of advanced AI chips produced using 7nm and below process nodes. Additionally, Chinese clients seeking future advanced process projects will be subject to strict review to ensure the chips are not used for AI or other restricted purposes.

As per TrendForce, if the policy takes effect, it could impact TSMC's revenue performance and utilization rates of its 7nm and below advanced process capacity, while also affecting the future development of China's AI industry.

The scrutiny follows the revelation that TSMC's 7nm technology was used in Huawei's 910B chip. This raised concerns over potential violations of US export regulati...