TAIWAN Semiconductor Manufacturing Company (TSMC) has notified Chinese chip design companies that it is suspending production of its advanced AI chips starting November 11, Financial Times reported on Friday (Nov. 8), citing three people familiar with the matter.

TSMC has told Chinese customers that it will no longer manufacture AI chips at advanced process nodes of 7 nanometers or smaller, the report said.

Any future shipments of such semiconductors by TSMC to Chinese customers would be subject to an approval process that could involve Washington, two of the three people cited said, according to the report. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are committed to complying with all applicable rules and regulations, including applicable export controls,” the company said in a comment.

The US Commerce Department did not immediately respond to a Reuters request for comment. Reuters