In a strategic move aligned with U.S. government sanctions, TSMC, the leading semiconductor foundry, has intensified its shipment restrictions on powerful GPU chips to Chinese customers. This comes as part of ongoing efforts to prevent advanced AI training technologies from falling into the hands of entities that may pose a national security risk. These changes follow TSMC's prior decision in November to halt shipments after a TSMC-produced chip was found in a Huawei AI processor, signaling a robust response to U.S. regulatory pressure.
As of January 31, 2025, new regulations implemented by TSMC prohibit fabless Chinese chip designers from ordering chips built with a 16nm process node or lower unless they engage a U.S. government-approved outsourcing semiconductor assembly and test (OSAT) house. This requirement represents an escalation in restrictions, designed to further limit China's access to sophisticated chip technology integral for AI development.
The shift comes amid heightened scrutiny of technology exports to China, especially chips featuring over 30 billion transistors using the 16nm and smaller nodes. Under these new U.S. regulations, any exports necessitate licensing from the U.S. Department of Commerce unless exceptions are made for approved customers in allied nations. Notably, China's DeepSeek-R1 utilized an impressive array of Nvidia H800 GPUs, which are built on a 4nm process node and contain a whopping 80 billion transistors, underscoring the advanced nature of the technology being targeted.
However, licensing remains a contentious issue, as reports indicate that DeepSeek may have acquired these GPUs without the required permissions, prompting investigations by the FBI and White House. Deliberations are now underway to ascertain whether a third party in Singapore facilitated this acquisition. Although Nvidia asserts that DeepSeek has not breached laws, the incident raises concerns about compliance standards among partners.
While companies such as Apple, AMD, Intel, and MediaTek are likely to continue receiving licenses, the landscape for shipping mainstream GPUs to China is evolving to necessitate licenses even for previously unrestricted products. TSMC's measures are being characterized as even more stringent than those set by the U.S. government, indicative of the growing vigilance surrounding tech exports and national security.
