Samsung and TSMC will no longer ship advanced chipsets to China as the U.S. has restricted the sale of chipsets based on 7 nm and below by these two major chip manufacturers to China.
The reason behind this crucial step is to curb China’s technological advancements, particularly in artificial intelligence, and also Trump’s protectionist policies. These advanced chipsets play an essential role in AI-powered applications, but China will no longer receive the chips from the two biggest foundry giants, Samsung and TSMC.
According to the report, Samsung has already informed its customers regarding the US restriction on supplying advanced chips to China but has yet to officially confirm it. On the other side, TSMC doesn’t play a crucial role in the Chinese market compared to Samsung Foundry.
It seems that this restriction could result in an adverse effect on its business, especially since it comes at a time when Samsung Foundry is dealing with low yield rates. It has already been reported that TSMC might not be able to manufacture the most advanced 2nm chips outside of Taiwan; this gives Samsung a solid opportunity to ramp up 2nm production at its US facility.
Noticeably, China and the US do not share a health bond; despite this, they maintain diplomatic ties and are not overly reliant on each other. For instance, when the US banned Huawei devices and urged Google to restrict access to Android, a strong Chinese brand quickly built its own HarmonyOS software, which isn’t a forked version of Android AOSP but entirely a new OS. It remains to be seen how this new restriction will force China to make new decisions against the US.
