TSMC halts shipments of high-end chips to China

TSMC, the world's largest contract semiconductor manufacturer, will stop supplying chips made on 7nm and more advanced processes to Chinese companies developing processors for AI and graphics processors from 11 November.

Here's What We Know

The move is aimed at complying with US export restrictions. According to Nikkei, it will not affect Chinese customers seeking 7nm chips for other industries such as mobile and communications, and the overall impact on the chipmaker's revenue will be minimal.

TSMC had previously notified US authorities about a Chinese customer's attempts to circumvent export restrictions by placing orders for a chip resembling the Huawei Ascend 910B GPU. As a result, the company suspended all shipments to this customer, allegedly a Sophgo chip designer.

According to sources, TSMC's decision came at the behest of the US Department of Commerce, which demanded that it stop shipments without the appropriate licences. The move highlights TSMC's difficult position in the global semiconductor supply chain amid an escalating chip war between the US and China.

Source: Nikkei Asia