Washington demand that supplies to Chinese customers stop starting Monday, the agency added.
The restrictions from the US Commerce Department, as outlined in the letter, will affect supplies of advanced 7-nanometer chips, as well as more advanced ones, for graphics processing units (GPUs) and AI accelerators to China.
Earlier, Nikkei Asia reported citing sources that TSMC would suspend production of AI chips and high-performance computing for several Chinese companies due to increased measures to comply with US export controls.
In October, Bloomberg reported that TSMC had stopped supplying semiconductors to a customer after they had been found in products from Chinese electronics manufacturer Huawei, which is contrary to US sanctions.
In early October 2022, the United States banned 28 Chinese technology companies from accessing semiconductor chips manufactured using US technology worldwide. The ban applies not only to supplies from US companies, but also to any company in the world using American semiconductor technology.