The US expanding its crackdown on China’s tech industry, ordering TSMC to stop shipping advanced semiconductors used for AI to Chinese companies.

The US and its allies have been working to cut off Chinese companies from advanced tech, especially advanced semiconductors. With AI quickly shaping up to the be next battleground for tech companies around the world, there is a growing effort to cut Chinese companies off from the technology they need to be competitive.

Huawei has been one of the companies most targeted by sanctions but, according to Reuters, TSMC discovered that one of its chips was found in a Huawei AI processor. In response, TSMC reported the finding to the US Commerce Department, leading to the Commerce Department ordering the company to halt chip shipments to Chinese companies.

“TSMC has had regular discussions with the government on export control issues and has made it clear that it will comply with domestic and international regulations,” Taiwan’s economy ministry said in a statement to Reuters.

The US is trying to determine what companies may be working to help Huawei and other blacklisted companies thwart restrictions. In the meantime, the crackdown is sure to impact a variety of companies and industries, further setting back China’s tech industry.