Asian Tech Press (Nov 7) -- Alibaba and semiconductor startup Biren Technology are reducing the specifications of their chips to avoid U.S. sanctions.

Alibaba and Biren Technology are optimizing the design of their most advanced chips to reduce processing speeds and avoid sanctions from the U.S. government aimed at cracking down on Chinese computing power, the Financial Times reported, citing people familiar with the matter.

TSMC, the world's largest contract chipmaker, previously produced the chips for the two Chinese companies. Both Alibaba and Biren Technology were already conducting expensive tests of their latest chips at TSMC when the U.S. announced the new export curbs on China's chip industry.

The new U.S. export controls forced the companies to halt further production and make adjustments to their chip designs, according to the report.