Trump turns off the light: TSMC bows to US pressure and blocks China
The Huawei incident may lead to China’s complete defeat in the global artificial intelligence market. TSMC treats its US partners and the new president, Donald Trump, with respect.
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The Taiwanese company TSMC, the world’s largest semiconductor manufacturer, has stopped the production of AI chips for Chinese companies. The decision follows controversy over the discovery that US-sanctioned Huawei uses TSMC chips in its AI accelerators.
In October, TechInsights, a Canadian research company, informed TSMC that chips manufactured by the Taiwanese company were found in Huawei equipment. This discovery caused a stir in the United States because Huawei, as a sanctioned company, cannot legally obtain technology from American companies. TSMC may not be American, but Taiwan is a country or territory allied to the USA.
TSMC prefers US customers
TSMC, wanting to avoid possible sanctions from the US, decided to stop the production of AI chips for Chinese customers. According to reports Financial Times this move aims to prove that the company “does not act against U.S. interests.” TSMC probably wants to demonstrate its “good will” in this way and show that it was not aware of the Huawei incident.
The company appears to be prioritizing good relations with the US government, even at the expense of relations with China. And there are reasons for this – its largest clients, such as Apple or Nvidia, are American companies.
Huawei apparently already has a plan…
In the meantime There have been reports that Huawei is tempting TSMC engineers with astronomical salaries in order to “come to the other side”. TSMC declared that it was continuing to investigate the Huawei incident. The company also says it has severed ties with the entity through which Huawei allegedly obtained the chips.
It is worth noting here that TSMC’s actions may be closely related to the protectionist policy of the new US president, Donald Trump, who treats China as a “trade enemy”. Trump announced that he will maintain a tough line towards China, which may mean new tariffs and trade restrictions for Chinese companies.
As a result of TSMC’s adaptation to new market conditions, the implementation of AI by the largest IT companies in China, led by Baidu, is in question. Mainland China does not have access to technological processes that compare to TSMC’s solutions… even those from a few years ago.
