TSMC is following US demands and restricting Chinese chipmakers’ access to its advanced factories. Companies that want to make high-end AI chips will have to find a solution elsewhere.
Taiwan’s TSMC has informed Chinese chip designers that it is not willing to bake their advanced AI chips in its factories. In doing so, TSMC is following U.S. sanctions. The US imposes far-reaching restrictions when it comes to the production of Chinese microchips, and can also exert its influence abroad. This is possible thanks to rules whereby companies using U.S. equipment, such as TSMC, are also subject to the restrictions.
Strict rules
Chinese companies that still want to use TSMC’s services will have to follow an approval process, according to the Financial Times. Details on that are not known, but it seems inevitable that the U.S. government under Trump’s control will have to give its approval.
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TSMC is anticipating even tighter regulations with the new measures. The move is painful for Chinese manufacturers, who have few alternatives. After all, to make the most advanced chips, they need very modern production facilities. Currently, TSMC has the most modern factories in the world. China itself has no factories that perform equivalent.
Currently, the restrictions relate to AI chips. It is unclear to what extent other types of chips will also be subject to restrictions.