Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, after Huawei’s AI processors were found to contain U.S.-banned TSMC chips, TSMC is suspending the supply of seven-nanometer and below chips to all mainland Chinese customers, regardless whether they are on the U.S. trade control list or not. TSMC has sent an official email to all mainland China AI chip customers, announcing the starting date of November 11 for the suspension.
TSMC’s decision is a huge blow to mainland Chinese AI and GPU companies and will have a significant impact on their performance and market competitiveness. Chip design companies in mainland China may have to find new foundries, which will lead to the reorganization of their supply chain. Mainland China’s current production capacity for advanced-process chips is currently very limited.
Bloomberg reported last month that semiconductor industry research organization TechInsights dismantled Huawei’s AI server chip Ascend 910B and found that a TSMC chip was part of the Huawei chip’s multi-chip architecture. Huawei was included on the U.S. trade control list in 2019.
Source: Lianhe Zaobao, November 8, 2024
https://www.zaobao.com.sg/realtime/china/story20241108-5315456?amp