TSMC, the world’s leading contract chipmaker, has reportedly informed Chinese companies of its decision to suspend production of advanced AI chips manufactured at process nodes of 7 nanometers or smaller due to U.S.-led export controls. This halt aligns with recent U.S. restrictions limiting China’s access to advanced GPU technology, which Washington fears could bolster Chinese AI capabilities for potentially hostile applications. The U.S. recently fined GlobalFoundries $500,000 for unauthorized chip shipments to a Chinese blacklisted entity, reinforcing the strict stance on tech exports. According to Financial Times sources, any advanced AI chip supplies from TSMC to Chinese firms will require U.S. approval.

My Take

This development underscores the strategic depth of U.S. export controls, which increasingly target China’s AI advancements. TSMC’s compliance highlights the pressure on global firms to adhere to these policies. The suspension will slow China’s AI infrastructure growth.

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Link to article:

https://www.reuters.com/technology/artificial-intelligence/tsmc-suspend-production-advanced-ai-chips-china-monday-ft-reports-2024-11-08/

Credit: Reuters