The United States has banned Taiwan Semiconductor Manufacturing Co (TSMC) from supplying advanced chips often used in artificial intelligence (AI) applications to customers in China after November 11, Reuters reports.

The US Department of Commerce has sent a letter to TSMC imposing export restrictions on 7nm or larger complex chips used in AB accelerators and graphics processors intended for China.

TSMC had earlier informed the Commerce Department that one of its chips had been found in a processor by Tech Insights, which had disassembled the product and found the TSMC chip in it, an export control violation.

There are restrictions on U.S.-focused Huawei that require suppliers to obtain licenses to supply any of the company's products or technologies.

After receiving the letter, TSMC notified its customers affected by the order that it would stop shipping chips starting Monday, the Commerce Department declined to comment.

"TSMC regularly discusses export control issues with the government and has made clear that it will comply with domestic and international regulations," Taiwan's Ministry of Economic Affairs said in a statement provided to Reuters.

A TSMC spokesperson also declined to comment further, saying only that TSMC is a "law-abiding company committed to complying with all applicable rules and regulations, including applicable export controls."