TSMC to stop supplying advanced AI processors for all of its China customers: Report

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(Image credit: Baidu)

After unintentionally producing an AI chiplet for Huawei via a proxy, TSMC is set to stop supplying sophisticated AI processors for all of its Chinese clients from Monday, November 11, reports Financial Times, citing Ijiwei.com, which in turn cited emails sent by the foundry to its customers. This change concerns advanced process technologies (such as 7nm and below) and will have a significant impact on China-based developers of AI processors. This does not, however, mean that TSMC will cease to serve these customers completely. 

The new restriction is limited to AI processors and AI GPUs made on 7nm-class and lower nodes. Smartphone processors, chips for automotive applications, and other devices that cannot be used for military or dual-use applications are not affected, the Ijiwei report stated. Sources with knowledge of the matter reportedly told Ijiwei that future supplies of advanced AI processors to China-based entities would require some kind of approval process, which likely involves specialists from the U.S. Department of Commerce. 

In fact, the foundry's decision follows a probe by the U.S. Commerce Department into how sophisticated chips produced by TSMC for a Chinese customer ended up in a Huawei AI device, despite Huawei being under multiple U.S. sanctions. TSMC's new restrictions reflect both a desire to strengthen its own internal controls and to prepare for expected U.S. export limitations on chip sales to China before President Biden's term ends. 

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Anton Shilov
Contributing Writer

Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.