-
- News
- Books
Featured Books
- pcb007 Magazine
Latest Issues
Current IssueAlternate Metallization Processes
Traditional electroless copper and electroless copper immersion gold have been primary PCB plating methods for decades. But alternative plating metals and processes have been introduced over the past few years as miniaturization and advanced packaging continue to develop.
Technology Roadmaps
In this issue of PCB007 Magazine, we discuss technology roadmaps and what they mean for our businesses, providing context to the all-important question: What is my company’s technology roadmap?
Wet Process Control
In this issue, we examine wet processes and how to obtain a better degree of control that allows usable data to guide our decisions and produce consistently higher-quality products.
- Articles
- Columns
Search Console
- Links
- Media kit
||| MENU - pcb007 Magazine
Reports Indicate TSMC to Tighten Scrutiny on Chinese AI Chip Clients; Potential Revenue Impact Between 5% to 8%
November 11, 2024 | TrendForceEstimated reading time: 2 minutes
Reports suggest that TSMC has notified its Chinese clients of a temporary suspension on shipments of advanced AI chips produced using 7nm and below process nodes. Additionally, Chinese clients seeking future advanced process projects will be subject to strict review to ensure the chips are not used for AI or other restricted purposes. TrendForce posits that if the policy takes effect, it could impact TSMC’s revenue performance and utilization rates of its 7nm and below advanced process capacity, while also affecting the future development of China’s AI industry.
The scrutiny follows the revelation that TSMC’s 7nm technology was used in Huawei’s 910B chip. This raised concerns over potential violations of US export regulations, along with allegations that certain companies may have acted as intermediaries to place advanced AI chip orders on behalf of Chinese firms. In response, TSMC is re-evaluating its KYC process and plants to improve its client approval standards, expand product review criteria, and potentially impose additional restrictions on chip size and HBM usage.
TrendForce notes that TSMC is highly likely to implement these measures in the near term, although the full impact will depend on whether the U.S. Department of Commerce issues additional export control regulations or adds specific customers to the Entity List.
For the first three quarters of 2024, TSMC’s revenue distribution shows that advanced nodes accounted for 67% of its total revenue—a key revenue source. However, TrendForce highlights that the major clients for TSMC’s 7/6n, 5/4nm, and 3nm processes are primarily from the U.S., Europe, and Taiwan. Consequently, even if regulatory actions impact business some Chinese clients may be lost, TrendForce expects other customers to offset this loss, limiting the potential effect on advanced process utilization rates.
TSMC’s revenue from China has remained steady at 11% to 13% for the full year of 2023 and the first three quarters of 2024. If regulatory scrutiny of TSMC’s advanced processes intensifies, or if certain Chinese clients are added to the Entity List—particularly affecting Chinese AI-related IC design companies, IP providers, third-party design services, or other businesses that depend on TSMC’s advanced processes for project initiation, tape-outs, and mass production—TSMC could face a revenue impact of approximately 5% to 8%. However, strong global demand for AI chips and TSMC’s planned price increases for advanced process clients are expected to help mitigate some of this impact.
Suggested Items
Occam Strengthens Leadership Team with Addition of PCB Expert Dana Korf
11/14/2024 | The Occam GroupThe Occam Group, developers of an innovative advanced electronics manufacturing methodology announced the addition of Dana Korf (Korf Consultancy) to its leadership team. Korf, a seasoned PCB professional, will play a pivotal role in driving innovation and expanding Occam’s capabilities for the electronics industry.
DuPont to Feature Innovative Electronics Products and Solutions at Electronica 2024
11/13/2024 | DuPontAs the demand for advanced technology surges, DuPont will be featuring its extensive portfolio of innovative products and solutions at Electronica 2024, the world’s premier trade fair for electronics, November 12-15 in Munich.
Henkel, Covestro and Quad Industries Collaborate for Advanced Medical Wearables Based on Printed Electronics
11/11/2024 | WEBWIREHenkel, Covestro and Quad Industries today have announced a partnership in the field of printed electronics. By joining forces and combining their different areas of expertise the companies aim to accelerate customer developments for advanced medical wearables and to further drive the adoption of innovative printed electronics solutions especially for stretchable materials in healthcare applications.
Boston Materials Announces $13.5M in New Funding for Manufacturing Expansion and Establishing Supply Chain Partnerships
11/08/2024 | PRNewswireBOSTON MATERIALS, INC., a manufacturer of advanced materials key to the next generation of semiconductors and aircraft platforms, today announced $13.5 million in new funding.
L3Harris Electronic Warfare System Completes Safety of Flight Testing
11/08/2024 | L3 TechnologiesL3Harris Technologies has completed Safety of Flight (SOF) qualification on its Viper Shield™ all-digital electronic warfare (EW) suite for F-16 fighter jets. The company will provide the advanced capability to F-16 fleets for six international partners.