TSMC's 7Nm Chip Ban Targets China's AI Chipmakers


(MENAFN- Asia Times) Taiwan Semiconductor manufacturing Co (TSMC), the world's largest chip contract manufacturer, will reportedly stop shipping 7 nanometer and below semiconductors to Chinese customers that make artificial intelligence (AI) chips or graphic processing units (GPUs).

The decision, effective from November 11 in line with US sanctions, is aimed at blocking China's Huawei Technologies from being able to place orders with TSMC via third parties, mainland IT website Jiwei reported on November 8.

However, TSMC will still be able to supply 7nm and below chips to Chinese customers that make chips for use in automobiles and smartphones.

TSMC said it has no comment on the reports, saying only it is law-abiding and strictly complies with all applicable laws and regulations, including applicable export control regulations.

Chinese fabless chip makers that use TSMC's manufacturing services to make AI/GPU chips
include Alibaba's T-Head, Baidu's Kunlunxin, Iluvatar, Enflame, MetaX, Black Sesame International, Jaguar Micro, Nio, Xiaopeng and Horizon Robotics, according to TMTPost , a Chinese IT news website.

Three major Chinese AI chip makers, including Cambrian Technologies, Biden Intelligent Technology and Moore Threads Technology, had used TSMC's foundry services until they were added to the US Commerce Department's Bureau of Industry and Security's (BIS)“Entity List” in 2023.

However, it's unclear whether these three Chinese firms have continued to place orders with TSMC via third parties to dodge the sanctions. On November 8, the Shanghai-listed shares of Cambrian fell 9.5% while the Shenzhen-listed shares of Horizon dropped 2.7% after Jiwei published its report.

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Asia Times

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