TSMC is currently the largest semiconductor manufacturer in the world. Many big players in the tech industry rely on its factories, especially for flagship products, as they offer the most efficient and reliable production processes. However, it seems that companies in China will have to forget about getting chips manufactured by TSMC for AI hardware.

The discovery that Huawei used chips made in TSMC’s factories sparked a significant controversy in the United States in October. Huawei is one of the companies sanctioned by the US government. This prevents them from obtaining technologies from American companies, whether hardware or software. However, TechInsights, a Canadian research firm, warned TSMC that they found chips manufactured by them in Huawei hardware.

TSMC reportedly canceling AI chip manufacturing for Chinese companies due to ‘Huawei incident’

More specifically, TechInsights found TSMC-manufactured chips in Huawei’s AI accelerators. TSMC notified the US government of the situation so that they could start an investigation and take appropriate measures. Now, with the controversy still relatively fresh, TSMC has canceled the production of AI chips for clients in China, according to the Financial Times. With this, the company may want to show that they are “not acting against US interests.”

TSMC’s alleged move could seek to avoid any kind of sanction from the US government. Essentially, it appears to be a gesture of “goodwill” to demonstrate that they were unaware of the situation. They may also want to show that their priority is to maintain good relations with the US government rather than with China. Meanwhile, recent reports suggest that Huawei is luring TSMC engineers with astronomical salaries to “switch sides.”

Trump’s arrival to the presidency could have been the driving force behind the decision. The new US president will uphold a protectionist economic policy, positioning China as the “trade enemy.” This means that Trump will not hesitate to implement tariffs on products and technologies from Chinese companies. He could also push for new trade restrictions, just as he did in his previous term.

TSMC continues to investigate the situation

Meanwhile, TSMC continues to investigate the incident. However, the company claims that it has also cut ties with the company through which Huawei allegedly obtained its chips. TSMC’s reported move could seriously affect the plans of big Chinese companies in the AI field. This includes Baidu, which was reportedly planning to use chips made by TSMC for artificial intelligence-based developments.

There’s a new portable gaming console in town, joining an ever-crowded field. The Ayaneo 3 is the manufacturer’s latest portable device, following last year’s Ayaneo 2S. This Windows-based handheld looks to be an improvement in nearly every major way over its predecessors.

The Ayaneo 3 will be available in a few different versions. Purchasers can choose between two processors, an AMD Ryzen AI 9 HX 370 or Ryzen 7 8840U. The HX 370 is the more powerful option, offering an “extraordinary handheld gaming experience with AI support.” It’s worth noting that the 8840U should still be able to run plenty of modern games, as the company says it’s a good choice for “gamers who prefer classic powerful performance.”

Folks can also select between two display options. There’s a model with a serviceable 7-inch LCD screen and another with a 7-inch OLED. Portable devices really pop with OLED screens.

Every model boasts a new back button design, to provide for a “richer button combination experience.” The company says the design has been “ergonomically optimized” so human fingers can easily reach those back buttons. There’s also a trigger lock feature, to offer enhanced “control in both popular and retro games.” Otherwise, the front-facing buttons and slanted joystick layout are familiar.

The front-facing speakers have received a refresh here, with Ayaneo promising “immersive audio beyond expectations.” It says they were designed in “deep collaboration with sound specialists” and will offer “low rumble” and “depth and clarity.”

That’s about all we know for now. Ayaneo says it’ll release more information soon, including new features and “more control innovations.” There’s no price yet and no release date.

Monarch Tractor has laid off around 10% of its workforce as part of a restructuring that will see it prioritize non-agricultural customers, license its autonomous technology, and boost sales of its AI-powered farm management software, TechCrunch has learned.

Around 35 employees were cut this week by the Livermore, California-based autonomous electric tractor startup that has raised a total of $220 million since it was founded in 2018. Some Monarch workers told TechCrunch they were let go without severance. It’s the second cut this year; Monarch previously laid off around 15% of its workforce in July.

CEO Praveen Penmetsa told TechCrunch in an interview the company decided to restructure after a slower-than-expected third quarter, and despite raising $133 million in July from the likes of Foxconn and agri-food tech impact firm Astanor. Penmetsa said he was uncertain if employees were let go without severance, but that the company has been trying to help out laid-off workers on a case-by-case basis.

“All of this happened pretty quickly,” Penmetsa said, referring to the recent crash of California’s vineyards, which made up a bulk of Monarch’s early customers. That development, plus an ongoing pullback in agri-tech investing, left Penmetsa and his team looking at other options.

“The industry has slowed down on acquisition of new equipment and new solutions, especially in the core farming sectors,” Penmetsa said. “But in the meantime, as a platform company, we also have some very exciting non-agriculture opportunities that started sprouting because of our success in ag.”

He said the company, which has shipped 500 tractors to date, is now focused on widening its customer base in a number of ways. It is expanding beyond agricultural customers to golf courses, solar farms, and even municipalities. It’s also putting more focus on selling its “WingspanAI” farm management software. And Monarch is in talks with other “off-road” vehicle companies to license its autonomous technology.

Penmetsa said these changes inspired the cuts which hit, among other things, some of Monarch’s engineering and operations team. He also said that Monarch is leaning more on contract-manufacturer Foxconn, which builds the tractors at its Lordstown, Ohio facility, for operational roles.

“We are a startup,” Penmetsa said. “You have to be agile, right?”

The Beatles have been nominated for two Grammys — nearly 50 years after the band officially split up. Their final song, called “Now and Then,” was restored last year with the help of AI, and is now up for record of the year alongside the likes of Beyoncé, Charlie XCX, Billie Eilish, and Taylor Swift. It’s also been nominated for best rock performance, where it goes up against Green Day, Pearl Jam, and The Black Keys.

However, “Now and Then” was never released, as technology at the time couldn’t separate John’s vocals and piano to get a clear sound. But in 2021, filmmaker Peter Jackson and his sound team were able to separate the instrumentals and vocals with machine learning technology, allowing Paul McCartney and Ringo Starr to finally complete the song.

Though “Now and Then” was finished using machine learning, it still falls within the bounds of The Grammy’s rules surrounding AI. The guidelines currently state that “only human creators are eligible to be submitted for consideration for, nominated for, or win a GRAMMY Award,” but work that contains “elements” of AI material is “eligible in applicable categories.”

It’s a bit strange to see “Now and Then” competing with modern-day music like Beyoncé’s “Texas Hold ‘Em,” but it’s been a long time coming. We’ll get to see how the Beatles fare during the 2025 Grammy Awards, which takes place on Sunday, February 2nd.