TSMC Is Going to Suspend Production of Advanced AI Chips For The Chinese Market

Apparently TSMC is going to suspend production of advanced AI chips for the Chinese market. Semiconductors using process nodes 7nm or smaller will no longer be available to Chinese customers. So that’s good.

(Reuters) -Taiwan Semiconductor Manufacturing Co (TSMC) (TSM) has notified Chinese chip design companies that it is suspending production of their most advanced AI chips from Monday, the Financial Times reported, citing three people familiar with the matter.


TSMC, the world’s largest contract chipmaker, told Chinese customers it would no longer manufacture AI chips at advanced process nodes of 7 nanometres or smaller, FT said on Friday.

The U.S. has imposed a raft of measures aimed at restricting the shipment of advanced GPU chips – which enable AI – to China to hobble its artificial intelligence capabilities, which Washington fears could be used to develop bioweapons and launch large-scale cyberattacks.

Earlier this month, the U.S. imposed a $500,000 penalty on New York-based GlobalFoundries for shipping chips without authorization to an affiliate of blacklisted Chinese chipmaker SMIC.

https://finance.yahoo.com/news/tsmc-suspend-production-advanced-ai-110135233.html

We live in an increasingly unstable world, with China rising rapidly both economically and militarily. Allowing China to order AI chips at all is foolhardy at best. In truth TSMC never should have provided semiconductors to the Chinese market. But the lure of cash gets to all of us I guess.

Anyway, TSMC sacrificed its country’s technological power for cash previous to now which is strange because the Taiwanese government is not a fan of letting TSMC’s most advanced node off of the island… but hey I guess you can always rationalize giving a country hellbent on annexing your country advanced semiconductors and semiconductors in general as long as enough cash is involved. The Chinese market certainly is huge.

But TSMC is bending to the will of the United States government and suspending sales of the most advanced semiconductors to China. China certainly cannot be allowed to continue its ramp up of AI technologies and computing power unchecked. Restrictions and outright bans are necessary to retard China’s advancements.

And from an ethical point of view, TSMC is doing the right thing. How on earth could it be ethical to provide a sworn enemy of your government advanced semiconductors which very well could be used to destroy your country? China will invade or blockade Taiwan. There is no question. Severing ties as fast as possible is the only thing to do.

The world cannot continue as it has been. Technological power must be maintained in the free world or else we will ALL be living inside of George Orwell’s 1984. You can dismiss the facts all you want, it won’t change them.