Samsung Joins TSMC in Halting Sub-7nm Chip Supply to China
Samsung Electronics has joined Taiwan Semiconductor Manufacturing Company (TSMC) in suspending the supply of advanced semiconductor manufacturing services for nodes of 7 nanometers and below to clients in mainland China. According to reports from Economic Daily News, Samsung’s semiconductor foundry division issued a notice similar to one previously sent by TSMC, which halted services for AI chip companies in the region. Samsung officially declined to comment on the development. This coordinated move significantly impacts mainland Chinese manufacturers, such as Semiconductor Manufacturing International Corporation (SMIC), which are already struggling with low yield rates for 7nm and smaller process nodes. Although production using Deep Ultraviolet (DUV) lithography technology remains technically feasible regardless of cost, the report indicates that commercial viability is severely compromised. Consequently, there are currently few active commercial customers in the AI and GPU sectors submitting wafers for production in mainland China. This escalation in export controls highlights the growing technological divide and the increasing pressure on China's domestic semiconductor industry to achieve self-sufficiency in advanced chip manufacturing amidst tightening international restrictions.
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Samsung Joins TSMC in Halting Sub-7nm Chip Supply to China
Samsung Electronics has joined Taiwan Semiconductor Manufacturing Company (TSMC) in suspending the supply of advanced semiconductor manufacturing services for nodes of 7 nanometers and below to clients in mainland China. According to reports from Economic Daily News, Samsung’s semiconductor foundry division issued a notice similar to one previously sent by TSMC, which halted services for AI chip companies in the region. Samsung officially declined to comment on the development. This coordinated move significantly impacts mainland Chinese manufacturers, such as Semiconductor Manufacturing International Corporation (SMIC), which are already struggling with low yield rates for 7nm and smaller process nodes. Although production using Deep Ultraviolet (DUV) lithography technology remains technically feasible regardless of cost, the report indicates that commercial viability is severely compromised. Consequently, there are currently few active commercial customers in the AI and GPU sectors submitting wafers for production in mainland China. This escalation in export controls highlights the growing technological divide and the increasing pressure on China's domestic semiconductor industry to achieve self-sufficiency in advanced chip manufacturing amidst tightening international restrictions.
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