TSMC suspends production of powerful GPU chip for Chinese tech firm

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phonearena.com, Oct. 23, 2022 – 

Taiwan Semiconductor Manufacturing Company Ltd. is known throughout the planet as TSMC. The largest foundry in the world produces chips based on the designs presented to it by companies like Apple, Qualcomm, Nvidia, MediaTek, and more. In fact, Apple is TSMC's largest customer and accounts for approximately 25% of the company's revenue.

TSMC currently produces powerful and energy-efficient chips such as the Apple A16 Bionic found inside the iPhone 14 Pro series, and the Qualcomm Snapdragon 8+ Gen 1 found in newer high-end Android phones including the Samsung Galaxy Z Fold 4, Galaxy Z Flip 4, and the Motorola Edge 30 Ultra. According to Bloomberg, TSMC has suspended production for Chinese start-up Biren Technology.

The reason for halting production for this company is that TSMC is following U.S. regulations that prevent it from making chips for the Chinese-based firm. Part of the reason for this is that Biren's products outperform Nvidia's A100 Graphics Processing Unit (GPU) silicon based on what the English language South China Morning Post calls "information in the public domain." The U.S. is trying to keep cutting-edge chips away from China.

This past September, the U.S. ordered that Nvidia stop shipping the A100 chip to China to "...address the risk that products may be used in, or diverted to, a 'military end use' or 'military end user' in China." The A100, according to Nvidia, is used to "power the world's highest performing elastic data centers for AI, data analytics, and high-performance computing (HPC) applications."

The U.S. Commerce Department last month expressed a goal to "keep advanced technologies out of the wrong hands." China called it a "tech blockade." At the same time, commerce ministry spokesperson Shu Jieting said that "the U.S. continues to abuse export control measures to restrict exports of semiconductor-related items to China, which China firmly opposes."

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