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TSMC Stops Production for Chinese Chip Firm as U.S. Regulations Tighten

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TSMC Stops Production for Chinese Chip Firm as U.S. Regulations Tighten

Biren Technology’s chief competition in the graphics chip market is Nvidia and AMD.

TSMC has yet to decide whether Biren meets the standards set by the United States.

According to an insider, Taiwan Semiconductor Manufacturing Co. has stopped producing cutting-edge silicon for Chinese startup Biren Technology to comply with U.S. regulations.

The decision is based on information that Biren’s products are better than Nvidia Corp’s A100 chips. These chips are now banned in China. TSMC has not decided if Biren’s products meet the U.S. restrictions, but they have now stopped supplying them to the Chinese startup. 

Biren, one of China’s most esteemed semiconductor designers, determined that America’s recent export restrictions won’t affect TSMC’s artificial intelligence chips. The reasoning behind this is that the specs of these products don’t fall under the curbs’ criteria. A spokesperson for TSMC said the company complies with all laws and regulations but didn’t elaborate further.

Restrictions imposed by the U.S.

Because Nvidia is not allowed to sell its most artificial intelligence products in China, the Biren company might take over as the leading competitor for graphics chip development. The U.S. has implemented rules to stagnate China’s technological progress that the military could utilize. This permit means that China does not have advanced fabrication production accessible. On October 7th, the U.S. Commerce Department’s Bureau of Industry and Security revealed that they would restrict semiconductor exports. This bureau plays a vital role in designing and enforcing export controls.

A Commerce Department spokesperson, who remained unnamed, said that while the agency cannot give company-specific feedback, they expect all companies to adhere to export controls. The Department of Commerce’s Bureau of Industry and Security (BIS) has been working hard to ensure compliance with the new rule by educating those affected.

Responding to a question about China during TSMC’s recent earnings call, CEO C.C. Wei stated that the world’s largest contract chipmaker company Biren follows all the rules and would continue adhering to all significant laws and regulations.

With support from notable companies such as Walden International and IDG Capital, Biren sought additional funds earlier this year at a valuation of $2.7 billion. The company’s BR100 and BR104 processors are designed similarly to the graphics chips Nvidia, and Advanced Micro Devices Inc. used for artificial intelligence. These processors can train models and algorithms related to natural language processing, computer vision, and conversational A.I.

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