Asianfin -- Taiwan Semiconductor Manufacturing Company (TSMC) has halted shipments of advanced chips to Chinese companies following a directive from the U.S. Department of Commerce, according to Reuters.

The move comes after a TSMC-manufactured chip was discovered inside a Huawei processor, raising concerns about potential export control violations.

Huawei, which faces stringent trade restrictions from the U.S., is under scrutiny, and the suspension is intended to give U.S. authorities time to assess if other companies might be supplying Huawei indirectly.

TSMC has reportedly informed affected clients that it will cease shipments starting Monday. The chips in question are used primarily in artificial intelligence applications, an area already under U.S. export restrictions affecting companies such as Nvidia.

In a statement to Reuters and other outlets, TSMC affirmed its "commitment to complying with all applicable rules and regulations, including export controls."