In a move that further intensifies the US-China tech rivalry, the United States has reportedly instructed Taiwan Semiconductor Manufacturing Co (TSMC), a key supplier to Apple, to cease shipments of advanced chips used in artificial intelligence (AI) applications to Chinese customers. This follows similar restrictions imposed on Nvidia and AMD in 2022.
According to Reuters, the US Department of Commerce sent a letter to TSMC on Monday, demanding the halt of chip shipments. The order specifically targets chips with 7 nanometer or more advanced designs, which power AI accelerator and graphics processing units (GPUs). This action comes after TSMC revealed to the Commerce Department that one of its chips was found in a Huawei AI processor. Huawei, a Chinese tech giant, is on the US restricted trade list, requiring suppliers to obtain licenses for any goods or technology exported to the company.
The discovery of a TSMC chip in Huawei’s Ascend 910B “multi-chiplet” processor has raised concerns about potential breaches of the US trade restrictions. While the exact circumstances of how the chip ended up in the Huawei processor remain unclear, TSMC has informed its affected Chinese clients about the suspension of shipments, starting Monday. The Commerce Department’s move echoes its actions against Nvidia and AMD in 2022, where similar letters were sent, restricting their ability to export AI chips to China. These initial letters later evolved into formal rules, further solidifying the US government’s stance on controlling the flow of advanced technologies to China.
This latest development highlights the escalating tensions between the US and China in the realm of technology. The restrictions on AI chip exports could have significant implications for China’s AI development, as it relies heavily on foreign suppliers for these crucial components. The move also raises questions about the future of global chip supply chains and the potential for further disruption in the tech industry.
