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Biden’s final blow to Lu! US chip ban spreads and 16nm may hurt TSMC

Daniel Nenni

Admin
Staff member
The United States intends to tighten chip controls on the mainland, and wafer factories such as TSMC face greater challenges in receiving orders from the mainland. Reuters


The United States intends to tighten chip controls on the mainland, and wafer factories such as TSMC face greater challenges in receiving orders from the mainland. Reuters

The United States intends to tighten chip controls on the mainland. Before the current President Biden leaves office, he will announce on the 10th as soon as possible that he will raise restrictions on the export of advanced chips such as AI to the mainland . There are also reports in the industry that the United States will expand the scope of process technology controls from the current With the 7nm advanced process extending to the 16nm mature process, wafer factories such as TSMC (2330) in mainland China face greater challenges in receiving orders.

The industry believes that it is not surprising that the United States has tightened export controls on NVIDIA and AMD products in order to suppress the development of AI and advanced semiconductor technology in mainland China . However, if the scope of process control is expanded to 16 nanometers, "Big", because it involves more manufacturers, applications, and orders, it may form a new storm in the global foundry and even the semiconductor industry.

Biden administration plans to expand chip controls in China


Biden administration plans to expand chip controls in China

TSMC will hold a legal meeting next Thursday (16th). It is currently in the silent period before the legal meeting. Now there is news that the United States intends to increase the control of semiconductors in China, which has attracted attention. Everything will have to be decided on the day of the legal meeting. TSMC executives explained.

The financial report shows that TSMC’s 16nm revenue accounted for about 8% in the third quarter of 2024. The legal person estimates that if the source of relevant customers is distinguished by the location of the headquarters, not all of them will be customers in mainland China. Considering the expanded contribution of TSMC’s 3nm and 5nm family advanced processes, the industry estimates that if the US expands controls to 16nm, the impact should be limited and controllable. On the contrary, GlobalFoundries and other 16nm companies will account for a higher share of revenue. Manufacturers must observe.

Separately, Bloomberg quoted people familiar with the matter as reporting that the outgoing Biden administration plans to further tighten export restrictions on advanced chips such as AI to prevent advanced technologies from falling into the hands of China and Russia. The new measures may harm U.S. chip giants such as Huida and Advanced Micro Devices. Huida and AMD both fell before the market opened on the 9th.

According to people familiar with the matter, the Biden administration plans to expand sales restrictions on AI chips to most regions around the world to control the popularity of AI technology.

It is understood that the few U.S. allies ranked at the first level can basically continue to have unlimited access to U.S. chips. Hostile countries are listed in the third level, which is equivalent to being blocked and unable to import advanced chips. Countries in the second tier will have limited access to total chip computing power.

Taiwan, Japan, South Korea, Europe, etc. are classified into the first level, while mainland China and Russia are classified into the third level. Southeast Asia, the Middle East, etc. belong to the second level and face new restrictions to prevent AI chips from these regions from flowing into China and Russia.

Huida opposed this proposal and issued a press release saying that the Biden administration would impose export controls on most parts of the world before it leaves. The policy change is too big and will not only not help reduce the risk of misuse, but will threaten economic growth and American leadership.

 
Can Trump reverse it? Musk has the President's ear and business (Tesla) in China. China could pressure Musk to persuade Trump to ease off on China.
 
Can Trump reverse it? Musk has the President's ear and business (Tesla) in China. China could pressure Musk to persuade Trump to ease off on China.

This would be hilarious if so!

Please let happen.

I want to the reaction from MAGAnuts
 
This would be hilarious if so!

Please let happen.

I want to the reaction from MAGAnuts
This one is tricky.

BYD is probably too important for them so they will probably not play carrot and stick with it. Tesla will follow fate of VAG and there is nothing Trump can do (EU tried appeasement and it did not work).

China will just devalue currency to shift loses away from exporters...
 
So PC makers in China have not been able to get the latest Intel chips for a while now?

They were, they even can legally get H100 and 4090ti if they "honestly swear on the grave of their granny that it's for export only" and apply for an exemption.
 
Can Trump reverse it? Musk has the President's ear and business (Tesla) in China. China could pressure Musk to persuade Trump to ease off on China.

20%+ of Tesla's business is in China. I can assure you Trump will modify this to benefit his billionaire backers, which I am fine with. America Business First! Politics is always about the US economy and barring China from buying American products is counter productive. Tariffs are a much better way to deal with trade imbalances. America buys more China products than China does American products. Our trade deficit with China in 2023 was $280B.
 
The United States intends to tighten chip controls on the mainland, and wafer factories such as TSMC face greater challenges in receiving orders from the mainland. Reuters


The United States intends to tighten chip controls on the mainland, and wafer factories such as TSMC face greater challenges in receiving orders from the mainland. Reuters

The United States intends to tighten chip controls on the mainland. Before the current President Biden leaves office, he will announce on the 10th as soon as possible that he will raise restrictions on the export of advanced chips such as AI to the mainland . There are also reports in the industry that the United States will expand the scope of process technology controls from the current With the 7nm advanced process extending to the 16nm mature process, wafer factories such as TSMC (2330) in mainland China face greater challenges in receiving orders.

The industry believes that it is not surprising that the United States has tightened export controls on NVIDIA and AMD products in order to suppress the development of AI and advanced semiconductor technology in mainland China . However, if the scope of process control is expanded to 16 nanometers, "Big", because it involves more manufacturers, applications, and orders, it may form a new storm in the global foundry and even the semiconductor industry.

Biden administration plans to expand chip controls in China


Biden administration plans to expand chip controls in China

TSMC will hold a legal meeting next Thursday (16th). It is currently in the silent period before the legal meeting. Now there is news that the United States intends to increase the control of semiconductors in China, which has attracted attention. Everything will have to be decided on the day of the legal meeting. TSMC executives explained.

The financial report shows that TSMC’s 16nm revenue accounted for about 8% in the third quarter of 2024. The legal person estimates that if the source of relevant customers is distinguished by the location of the headquarters, not all of them will be customers in mainland China. Considering the expanded contribution of TSMC’s 3nm and 5nm family advanced processes, the industry estimates that if the US expands controls to 16nm, the impact should be limited and controllable. On the contrary, GlobalFoundries and other 16nm companies will account for a higher share of revenue. Manufacturers must observe.

Separately, Bloomberg quoted people familiar with the matter as reporting that the outgoing Biden administration plans to further tighten export restrictions on advanced chips such as AI to prevent advanced technologies from falling into the hands of China and Russia. The new measures may harm U.S. chip giants such as Huida and Advanced Micro Devices. Huida and AMD both fell before the market opened on the 9th.

According to people familiar with the matter, the Biden administration plans to expand sales restrictions on AI chips to most regions around the world to control the popularity of AI technology.

It is understood that the few U.S. allies ranked at the first level can basically continue to have unlimited access to U.S. chips. Hostile countries are listed in the third level, which is equivalent to being blocked and unable to import advanced chips. Countries in the second tier will have limited access to total chip computing power.

Taiwan, Japan, South Korea, Europe, etc. are classified into the first level, while mainland China and Russia are classified into the third level. Southeast Asia, the Middle East, etc. belong to the second level and face new restrictions to prevent AI chips from these regions from flowing into China and Russia.

Huida opposed this proposal and issued a press release saying that the Biden administration would impose export controls on most parts of the world before it leaves. The policy change is too big and will not only not help reduce the risk of misuse, but will threaten economic growth and American leadership.


This gonna cause us many problems!!!

I guess at somepoint we will have to follow Infineon and the like to go fully contained supply chain in China.
 
20%+ of Tesla's business is in China. I can assure you Trump will modify this to benefit his billionaire backers, which I am fine with. America Business First! Politics is always about the US economy and barring China from buying American products is counter productive. Tariffs are a much better way to deal with trade imbalances. America buys more China products than China does American products. Our trade deficit with China in 2023 was $280B.
I have no doubt. Trump’s flip-flop on TikTok is already a warning. During his last year in the White House, Trump was going hell on Earth against TikTok. I have no doubt he will do whatever benefits himself and his backers. It’s going to be an interesting four years. The 45th Trump’s tariffs on China, which were kept by Biden, could be broken by the 47th Trump because of his biggest backer, Musk’s ties to China.
 
I have no doubt. Trump’s flip-flop on TikTok is already a warning. During his last year in the White House, Trump was going hell on Earth against TikTok. I have no doubt he will do whatever benefits himself and his backers. It’s going to be an interesting four years. The 45th Trump’s tariffs on China, which were kept by Biden, could be broken by the 47th Trump because of his biggest backer, Musk’s ties to China.
DoD advice is one of the main reasons that we are seeing anti Tik Tok pushes from the President.

Government contractors have been banning Tiktok even from BYO device use for a while.
 
Although I used to think business is business despite political differences, I'm evolving on this issue, based on learning more history. Business and politics should not be blindly separated if we are to avoid some mistakes of the past that have increased human suffering. It is not so simple, although I wish it was.
3 examples:
IBM and the Holocaust: During World War II, IBM continued to do business with Nazi Germany, supplying punch card machines that were used to categorize and track concentration camp prisoners. This collaboration facilitated the efficient execution of the Holocaust.

American Corporations and Apartheid South Africa: Many American corporations continued to do business in South Africa during the apartheid era, despite the regime's systematic racial segregation and oppression of the majority black population. This economic support prolonged the apartheid regime's existence and contributed to widespread human rights abuses.

Soviet-German Economic Cooperation (Molotov-Ribbentrop Pact): Before World War II, Nazi Germany and the Soviet Union signed the Molotov-Ribbentrop Pact, a non-aggression treaty that included economic cooperation. This pact allowed both countries to benefit economically, but also paved the way for their subsequent invasions of neighboring countries and contributed to the suffering of millions.
 
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