Samsung Reportedly Joins TSMC in Halting 7nm and Below AI Chip Supplies to China

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trendforce.com, Nov. 12, 2024 – 

The U.S. has tightened restrictions on foundries supplying 7nm and below chips to Chinese clients. According to a report from Economic Daily News, following TSMC's suspension of services to restricted Chinese clients, rumors suggest that South Korea's Samsung is also affected by U.S. restrictions, preventing it from offering such foundry services to Chinese firms.

Samsung's foundry division has reportedly notified Chinese clients about the restrictions, according to the report. However, Samsung has declined to comment on these rumors.

As for Intel, since it is closely aligned with the U.S., the company is also expected to comply with U.S. regulations, as the report mentioned. This would lead to a comprehensive blockade of China's effort to develop advanced AI chips, signaling a new chapter in the U.S.-China semiconductor confrontation, potentially reshaping the global semiconductor landscape.

The report pointed out that currently, only three companies–TSMC, Samsung, and Intel–are capable of providing foundry services below the 7nm process. China's leading foundry, SMIC, claims to have 7nm production capability, but it lacks the necessary economies of scale and efficiency.

Citing industry sources, the report suggests that Alibaba's AI chip subsidiary, T-Head, could be the most heavily impacted by the restrictions, indicating that, following Huawei, Alibaba has now also come under scrutiny by the White House. Along with T-head, other Chinese AI chip companies, such as Bitmain and Cambricon, are also likely to be impacted.

Fully owned by Alibaba, T-Head has made rapid progress in next-generation chip development, with its "Yitian" series reaching sub-5nm technology, as the report mentioned. The company claims that its technology supports applications across diverse fields, including AI in automotive, gaming, and scientific research.

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