Taiwan Semiconductor Manufacturing Company has notified Chinese chip design companies that it will suspend production of their most advanced artificial intelligence chips, as Washington continues to impede Beijing’s AI ambitions.

Taiwan Semiconductor Manufacturing Co (TSMC) has notified Chinese chip design companies that it is suspending production of their most advanced AI chips from Monday, the Financial Times reported, citing three people familiar with the matter.

As TSMC is a major supplier of advanced chips to Nvidia Corp, Advanced Micro Devices Inc and Intel Corp, any tariff hikes could inflate electronics prices and increase US inflation, it remains to be seen whether Trump would impose sweeping or selective tariffs, Macronix International Co (旺宏) chairman Miin Wu (吳敏求) said on Thursday.

Taiwan Semiconductor Manufacturing Company (TSM) is following U.S. efforts to curb China’s artificial intelligence ambitions, reportedly telling chip design firms in the country it will stop producing their most advanced AI chips.

Taiwan Semiconductor (NYSE:TSM) will no longer build advanced artificial intelligence processors for Chinese companies as of next week, amid the push from the U.S. to impede China's ambitions, the Financial Times reported.