TSMC Reportedly Ending Shipments For Its 7nm And More Advanced Nodes To Chinese Firms As These Entities Could Be Proxies For Huawei, Giving It An Edge

Huawei was previously rumored to have been receiving 7nm chip shipments from TSMC, but the only way that could be possible was through proxies. While the Taiwanese semiconductor giant has re-assured that it will take prompt action if found violating the trade sanctions, with Donald Trump being re-elected as the U.S. President, you can strongly believe that his administration will be locked in on China. According to the latest report, TSMC has notified its Chinese customers through email that all 7nm and below chip shipments will be halted starting next week.

The update was provided to various TSMC’s Chinese customers through email, stating that suspension of supplies for the 7nm and below processes will be stopped from November 11. Thankfully, this supply will only affect those who leverage TSMC’s technology for AI, smartphones, and automobile chips. The ban will remain in place until the semiconductor manufacturer and the U.S. Department of Commerce can negotiate and issue specific control details.

As for those who do not fall into the aforementioned categories, those chips can still be produced at TSMC after applying for a license. This decision will negatively affect the company’s revenues, but it is likely that more U.S. firms will pick up after these Chinese entities shortly after, allowing the chipmaking behemoth to offset its minor losses quickly. It was previously believed that these overseas firms acted as proxies for Huawei to enable the latter to gain access to technology for various applications.

While no evidence has been presented that connects Huawei with nefarious activities, the former Chinese giant has been reported to be approaching TSMC engineers through recruitment agencies, offering them triple their current salaries if they come to work for Huawei. These engineers possess multiple years of experience and skill that have been paramount for TSMC’s success, not to mention possessing technological trade secrets that can shift the tide in Huawei’s favor should these people agree to work for it.

Sadly, Huawei has yet to experience any luck in this area, and even if the claims about the other Chinese firms acting as proxies were true, their trade channels have seemingly been severed.

News Source: ijiwei