TSMC (Taiwan Semiconductor Manufacturing Company) has paused shipments of advanced chips to Chinese customers following the discovery of one of its chips in a Huawei device, in violation of U.S. sanctions. The move comes as TSMC responds to heightened scrutiny and regulatory compliance concerning the export of chips that may have military applications. The U.S. has been tightening restrictions on advanced chips going to China, particularly targeting companies like Huawei, to prevent potential military use. As a result of these restrictions, TSMC has seen a significant decrease in revenue from Chinese clients, dropping from 20% in 2019 to about 12% last year.

Key Points:

• TSMC halts chip shipments to China due to compliance issues following discovery of chips in Huawei devices.
• The U.S. government maintains strict export controls on advanced chips, targeting companies with potential military use.
• TSMC must verify the specifications of orders from Chinese customers to comply with U.S. regulations.
• The company's revenue from Chinese clients dropped from 20% in 2019 to approximately 12% last year.
• TSMC asserts it has not supplied chips to Huawei since the U.S. restrictions took effect.
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