Announcement Expected as Early as the 15th (Local Time)
Extension of Biden's AI Chip Export Controls
The United States is set to announce additional regulatory measures targeting major foundry (semiconductor contract manufacturing) companies such as Taiwan's TSMC and Samsung Electronics to tighten controls on the export of advanced semiconductor chips to China, Bloomberg reported on the 14th (local time).
According to sources, U.S. regulators plan to establish rules requiring foundry companies like TSMC, Samsung Electronics, and Intel to conduct more thorough investigations and strengthen due diligence when selecting customers. However, the Bureau of Industry and Security at the U.S. Department of Commerce, which oversees semiconductor export controls, declined to comment on the matter.
According to the draft regulations, chips manufactured using 14nm (1nm = one billionth of a meter) or 16nm or smaller processes will require U.S. government approval before being sold to countries of concern such as China. Sources indicated that chips with fewer than 30 billion transistors and packaged by a trusted company would not be considered "advanced chips" subject to regulation.
The regulatory proposal, expected to be announced as early as the 15th local time, is an extension of the AI semiconductor export controls previously announced by the Biden administration. Last week, the White House unveiled export controls aimed at blocking AI chip exports to China, and further set import limits on AI semiconductors for countries that are neither allies nor countries of concern, to prevent circumvention through third countries.
Bloomberg explained, "The U.S. wants to eliminate backdoors through which Chinese customers like Huawei still acquire advanced chips," adding, "The new regulations to be announced aim to cut off supply sources targeting the world's largest semiconductor manufacturers." Previously, after advanced chips from TSMC were found in devices of Huawei, a Chinese company on the U.S. blacklist, the U.S. Department of Commerce reportedly instructed TSMC to halt production of chips smaller than 7nm for Chinese customers.
However, Bloomberg expressed doubts about the effectiveness of the regulations, noting that manufacturers still have ways to identify Chinese companies circumventing U.S. export controls. Earlier, Nvidia criticized the Biden administration's AI chip export controls, warning that they could undermine U.S. competitiveness. China is estimated to account for about 17% of Nvidia's revenue.
Meanwhile, TSMC announced on the 11th that it has started mass production of cutting-edge 4nm chips at its U.S. plant in Arizona. The most advanced commercial foundry technology currently is the 3nm process, with TSMC and Samsung Electronics producing 3nm products in Taiwan and South Korea, respectively. The Biden administration, which has attracted global semiconductor companies to build factories in the U.S. through massive subsidies, confirmed a $6.6 billion semiconductor subsidy to TSMC in November last year. In response, TSMC pledged to expand its U.S. investment to $65 billion and build a third fab in Arizona utilizing the 2nm process by 2030.
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