Nov 11, 2024 07:15 PM
BUSINESS
TSMC Suspends Shipments of More Advanced Chips to Mainland Clients, Sources Say
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The U.S. has taken several measures to limit China’s ability to buy advanced semiconductors made with American technology. Photo: AI generated
Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) will temporarily stop shipping some of its artificial intelligence (AI) chips made with 7-nanometer or more advanced process technology to its Chinese mainland clients, sources told Caixin, in a move that could presage an escalation in the China-U.S. tech war.
The Taiwan-based TSMC has sent word to several AI chip designers on the mainland that it will suspend its contract manufacturing services for them, without providing further details, according to executives at a handful of the companies.
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- TSMC is pausing shipments of AI chips made with advanced technology to Chinese clients, aligning with U.S. measures to restrict China's access to high-tech semiconductors.
- The U.S. has implemented various strategies, including blocking EUV equipment exports and setting firm export controls, to curb China’s acquisition of advanced semiconductor technology.
- These restrictions might encourage Chinese chipmakers to strive for self-sufficiency, although TSMC's revenue from 7-nanometer chips remained steady in the third quarter.
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Who’s Who
- Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC)
- Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) is a leading semiconductor manufacturer known for producing advanced chips. The company is halting some shipments of AI chips with 7-nanometer or more advanced technology to Chinese mainland clients, adhering to U.S. export controls. This move aligns with efforts to limit China's access to advanced semiconductors. TSMC generated 17% of its revenue from 7-nanometer chips in Q3 2023, indicating its significance in their portfolio.
- ASML Holding NV
- ASML Holding NV is the world's sole supplier of extreme ultraviolet lithography (EUV) equipment, crucial for producing advanced semiconductors like those with 7-nanometer technology or smaller. The U.S. government persuaded the Dutch government to block ASML's EUV exports to China as part of efforts to limit China's access to advanced semiconductor manufacturing capabilities.
- Huawei Technologies Co. Ltd.
- Huawei Technologies Co. Ltd. is among the Chinese chip-related entities placed on the U.S. Entity List, aimed at blocking their access to advanced semiconductors. The U.S. measures intend to restrict Huawei and similar companies from obtaining sophisticated chips made by firms like TSMC, as part of a broader strategy to limit China's capabilities in acquiring advanced semiconductor technology.
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What Happened When
- 2018：
- The U.S. government convinced the Dutch government to prevent the export of ASML's EUV equipment to China.
- October 2022：
- The U.S. government enacted export controls on semiconductor technology to restrict exports to China.
- 2023：
- Washington updated semiconductor export controls to close loopholes in the rules established in 2022.
- In the third quarter of this year, 2024：
- TSMC generated 17% of its revenue from manufacturing 7-nanometer chips, flat from 2023.
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