New US Sanctions Halt TSMC Shipments to More Mainland China Chip Design Firms
Taiwan Semiconductor Manufacturing Company (TSMC) has notified numerous integrated circuit design firms in mainland China that it will suspend shipments of chips manufactured using 16nm/14nm and more advanced process nodes. This suspension applies unless the chips are packaged by an Outsourced Semiconductor Assembly and Test (OSAT) provider included on the US Department of Commerce’s Bureau of Industry and Security (BIS) whitelist. The move follows new export control regulations introduced by the BIS last month under the Export Administration Regulations, which mandate enhanced due diligence for semiconductors using these advanced nodes. Effective January 31, these rules require non-whitelisted Chinese design companies to either seek specific approval from the US Department of Commerce or ensure their final packaging and testing are handled by a whitelisted OSAT partner. While foundries like TSMC can continue manufacturing for whitelisted entities without restriction, the new compliance requirements have already begun disrupting production and delivery schedules for several Chinese semiconductor companies. This development highlights the tightening grip of US export controls on China's access to advanced semiconductor technology, forcing significant operational adjustments within the global supply chain.
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New US Sanctions Halt TSMC Shipments to More Mainland China Chip Design Firms
Taiwan Semiconductor Manufacturing Company (TSMC) has notified numerous integrated circuit design firms in mainland China that it will suspend shipments of chips manufactured using 16nm/14nm and more advanced process nodes. This suspension applies unless the chips are packaged by an Outsourced Semiconductor Assembly and Test (OSAT) provider included on the US Department of Commerce’s Bureau of Industry and Security (BIS) whitelist. The move follows new export control regulations introduced by the BIS last month under the Export Administration Regulations, which mandate enhanced due diligence for semiconductors using these advanced nodes. Effective January 31, these rules require non-whitelisted Chinese design companies to either seek specific approval from the US Department of Commerce or ensure their final packaging and testing are handled by a whitelisted OSAT partner. While foundries like TSMC can continue manufacturing for whitelisted entities without restriction, the new compliance requirements have already begun disrupting production and delivery schedules for several Chinese semiconductor companies. This development highlights the tightening grip of US export controls on China's access to advanced semiconductor technology, forcing significant operational adjustments within the global supply chain.
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