To comply with regulations limiting certain chipmaking technology transfers to China, the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), has suspended its production of advanced silicon for the Chinese startup Biren Technology, according to Bloomberg News.
Announced by the U.S. Commerce Department’s Bureau of Industry and Security (BIS) in early October, these regulations were enacted by the Biden administration in an effort to protect U.S. “national security and foreign policy interests” against what has long been perceived as a growing potential threat.
They are designed to slow the rapidly developing domestic semiconductor industry in China, especially in its application to develop advanced military systems, by creating a sanctions-like effect.
According to Bloomberg, the news about TSMC comes amid reports that Biren’s products outperform Nvidia’s A100 chips, already banned from the Chinese market.
Biren is considered one of China’s leading chip designers, classified in the U.S. as a domestic contender with California-based Nvidia. Biren’s flagship processors are similar in design to those Nvidia developed for AI purposes.
However, Biren previously declared that the chips it produced in partnership with TSMC did not breach U.S. export rules.
TSMC has allegedly not verified that Biren’s products meet the criteria requiring the suspension of exports, but the Taiwanese company moved to enact the stoppage regardless.
Bloomberg reported that TSMC declined to elaborate on its alleged decision, stating simply that the company complies with all relevant rules.
The BIS has been assisting with implementing the new and, according to global firm Morgan Lewis, vague rules.
Responding to Bloomberg’s questions concerning SMC’s business dealings with Biren, a spokesperson for the BIS replied that while they “cannot comment on company-specific actions,” they “expect all companies to comply with export controls.
Since the release of the rule on October 7, BIS has been undertaking a vigorous outreach effort to educate those impacted by it to aid compliance efforts.”
On a recent earnings call, TSMC’s Chief Executive Officer C. C. Wei underscored the company’s commitment to complying with all applicable regulations.
At the same time, Wei reassured attentive shareholders that the chipmaker “will continue to serve all customers around the world.”
