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TSMC AI stops shipping powerful GPU chips for China used to train models


Last November, the world’s top chip foundry, TSMC, Customers in China discontinue AI chips shipping After the US government requested to do so. The request came after a chip manufactured by TSMC, which was discovered inside the AI ​​processor created by Huawei. TSMC was only following American restrictions by banning the 7Nm process node and low -made shipments made using advanced GPU chips.
Now, we are in the second month of 2025 and TSMC has added some new sanctions As it tries to keep the powerful silicone components used for AI training from the hands of Chinese. The latest restrictions, which began on 31 January, prevents the fabless Chinese chip designers from ordering TSMC, unless they use a third-party approved packaging house by the US government.

American sanctions now need to use US-watery OSATS (outsourced semiconductor assembly & test), so that they can get chips assembled by TSMC. A ‘fabless’ chip designer is one who does not own any chip manufacturing features or fabs. Thus, these firms turn to TSMC to produce chips based on designs presented to the Taiwan-based contract foundry.

The new American rules also prevent exports of chips to China with more than 30 billion transistors produced using the 16Nm process node or less until developers receive licenses from the US Department of Commerce. The US, Taiwan and concerned nations can also try to get a permit if chips are being sold to approved customers. China’s Dipsek-R1 was allegedly trained using 2,048 NVidia H800 GPU over a two-month period. The Nvidia H800 GPU built on the 4Nm process node allegedly packs 80 billion transistors that should make the chip powerful and energy efficient.

Because Nvidia H800 GPU is about three times the range of 30 billion transistors and is produced using the 4Nm process node, Deepsek will require a license to purchase a chip. Obviously, such a license was not issued to the company. As a result, FBI and White House are investigating how these chips were obtainedA theory is based on reports that included a mediator in Singapore. While NVIDIA recently said that it did not believe that Deepsek broke the law, the American chip company also said that its partners should work within the law.

Despite the new sanctions, companies such as Apple, AMD, Intel, MediaTek, and others are expected to obtain license for chips with more than 30 billion transistors. However, companies such as mainstream GPU that AMD, Intel, and Nvidia were first sold to Chinese firms without restrictions, now a license would be required to send China. It is interesting that in some cases the TSMC restrictions are also tight compared to those imposed by the US.



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