Reports from multiple industry sources indicate that TSMC has notified its AI chip customers that it will suspend shipments of 7nm and more advanced process chips starting November 11. The suspension reportedly affects shipments linked to export control compliance reviews initiated by the U.S. Department of Commerce.
Industry analysts note that this move underscores TSMC’s sensitive position within the global semiconductor supply chain as export restrictions tighten. The company is expected to align with updated Bureau of Industry and Security (BIS) guidelines governing the sale of advanced chips used in artificial intelligence and high-performance computing.
According to reports from Bloomberg and Reuters, TSMC’s decision coincides with its near-finalization of a multi-billion-dollar U.S. funding package that includes $6.6 billion in grants and up to $5 billion in loans to expand its Arizona manufacturing operations. These facilities are expected to support advanced nodes and strengthen North American supply chain resilience.
Analysts suggest that the pause in shipments will likely affect companies relying on 7nm-class AI and GPU chips, potentially leading to increased production costs, delayed product launches, and performance adjustments. Foundry customers may need to diversify manufacturing strategies or explore alternative suppliers to maintain production continuity.
TSMC’s action reflects growing complexity in global semiconductor trade, where compliance with multiple jurisdictions — particularly those involving advanced manufacturing technologies — now shapes strategic business decisions.
According to data from TrendForce, as of Q2 2024, TSMC held a 62.3% global market share, followed by Samsung with 11.5%, and SMIC at 5.7%, illustrating the foundry industry’s continued concentration among a few key players.