Part 2/5:
TSMC, the world's leading chip manufacturer, previously provided Huawei with an earlier generation of chips. However, the company has now canceled orders from a Chinese company that was remarkably similar to Huawei's AI chip, the Ascend 910B. This decision, made in collaboration with the US Department of Commerce, has put the Chinese company's large advanced payment at risk.
The impact extends beyond Huawei, as other Chinese chip design companies have also received notifications from TSMC that they can no longer produce 7-nanometer or smaller AI chips for them. Samsung has also informed its Chinese clients that it will no longer provide 7-nanometer and advanced chips.