TSMC cuts off supply of advanced AI chips to China, citing US regulations
In a move that could significantly impact China's artificial intelligence (AI) development, Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, has reportedly suspended production of advanced AI chips for Chinese customers. This decision comes amid rising tensions between the US and China, with the US expressing concerns about China's use of AI technology.
According to the Financial Times, TSMC informed Chinese chip design companies that it will no longer manufacture AI chips using the most advanced 7-nanometer process node or smaller. This effectively cuts off Chinese access to the most powerful AI chips currently available.
The move appears to be a response to US pressure. The US has been increasingly wary of China's advancements in AI, fearing the technology could be used for military applications such as cyber warfare and the development of autonomous weapons. Earlier this year, the US imposed restrictions on the export of advanced graphics processing units (GPUs) - essential components for AI - to China. Additionally, a US company, GlobalFoundries, was recently fined for shipping chips to a blacklisted Chinese chipmaker without authorization.
The impact of TSMC's decision is likely to be significant. Any future requests from Chinese companies for advanced AI chips from the semiconductor giant would likely be subject to a rigorous approval process involving U.S. authorities.
Chinese companies will now have to rely on less powerful domestic alternatives or seek alternative chipmakers, potentially hindering their progress in AI research and development. It could also put pressure on China to accelerate its efforts to develop advanced chip manufacturing capabilities.
TSMC, in a statement, declined to comment on "market rumors" but emphasized its commitment to complying with all applicable export control regulations. The US Department of Commerce has not yet responded to requests for comment.
The long-term implications of TSMC's decision for the global AI landscape and US-China relations remain to be seen. However, this move marks a significant escalation in the ongoing tech war between the two nations.
