Arthur T Knackerbracket has processed the following story:
A US order to TSMC to cut AI chip supplies to China over Huawei sanctions won't cause problems for Apple. However, Taiwan's prohibition of TSMC producing 2-nanometer chips elsewhere could make an impact.
U.S. sanctions against Huawei has caused problems for TSMC over attempts by intermediaries to order certain AI-based chip designs on Huawei's behalf. From Monday, TSMC is suspending shipments of the AI-focused chips to China, on the orders of the United States.
[...] The blocked shipments by the Department of Commerce certainly impacts TSMC's sales with Huawei, but it could also cause other problems.
[...] Lower production means it has to shift around its production line to maximize the utility of its facilities. For its relatively new Arizona production plant, its relatively low amount of production could make it a viable facility to temporarily mothball.
While largely risking the Arizona investment temporarily, the order probably won't do much to harm Apple's supplies from the company.
Apple relies on assembly partners in China to produce its products, including the iPhone, and TSMC's chips therefore need to be imported. As chips that have AI benefits in the form of the Neural Engine, this is the sort of chip that the Commerce Department is wary about handing over to Huawei.
However, with the exception of a small amount of A16 chips produced in the Arizona facility, the vast majority of its chips are made elsewhere, including in Taiwan.
While there is an intention for Apple chips to be made in the United States via TSMC's Arizona facility, it may not necessarily get to produce cutting-edge chips.
[...] "Since Taiwan has related regulations to protect its own technologies, TSMC cannot produce 2-nanometer chips overseas currently," Kuo told the Economics Committee in Taipei. "Although TSMC plans to make 2-nanometer chips [abroad] in the future, its core technology will stay in Taiwan."
[...] Under Taiwanese law, domestic chip manufacturers are allowed to produce chips elsewhere. The catch is that they must be at least one generation behind fabrication facilities operated in Taiwan.
TSMC currently plans to make 2-nanometer and more advanced chips at its Arizona facilities by 2030, according to the company's roadmap.
[...] Unless Taiwan changes its laws, TSMC will have to create and use even more advanced manufacturing processes to allow 2-nanometer chip production to start in the United States.
For Apple, this means it cannot take advantage of TSMC's newer chip processes for any chips made in the United States. Instead, it will have to rely on TSMC's slightly older tech for US-based production, while maintaining existing out-of-US manufacturing for the fastest, newest chips.
(Score: 3, Funny) by ls671 on Wednesday November 20, @12:31AM
I am confused, where is Apple going to get the AI chips for its products assembled in China then?
Everything I write is lies, including this sentence.
(Score: 1, Interesting) by Anonymous Coward on Wednesday November 20, @01:12AM (6 children)
Well, whaddya know... U.S. jurisdiction is global after all...
They are king of the world!
Will we ever see enough worldwide unity to tell the Americans to fuck off?
(Score: 5, Insightful) by Tork on Wednesday November 20, @02:43AM (4 children)
🏳️🌈 Proud Ally 🏳️🌈
(Score: 0) by Anonymous Coward on Wednesday November 20, @02:39PM (3 children)
That will do nothing to stop the overreach of U.S. law enforcement. And I am very disappointed to see some people here support this kind of thing and think the U.S. is the only legitimate sovereign on the planet
(Score: 2) by Tork on Wednesday November 20, @03:26PM (2 children)
🏳️🌈 Proud Ally 🏳️🌈
(Score: 0) by Anonymous Coward on Wednesday November 20, @05:07PM (1 child)
You are misreading my comment. I wasn't talking about you. I am disappointed by the people who express their support for economic dictatorship through the negative moderation of the original post inside this thread. We need to create a better balance of power to kill the leverage of unilateral sanctions.
(Score: 2) by Tork on Wednesday November 20, @05:10PM
🏳️🌈 Proud Ally 🏳️🌈
(Score: 2) by gnuman on Wednesday November 20, @07:35PM
No, it is not. The problem is that US is the largest market and also interwoven in other economies. So if you get banned by US, it's de facto global unless you don't want to deal with US linked businesses.... also, US is critical for Taiwan vis-a-vis Xi's "forceful reunification plans"
BUT
If US enacts the idiotic Trump tariffs that he has promised, it would be one of the big steps of US removing itself from this equation (when it comes to importance in trade). High tariffs on global imports would greatly reduce the need to have USD outside of US. They could even decouple US from the global trade and eventually kill USD as the de facto reserve currency. It doesn't mean USD will not become stronger in the near term - tariffs do that too as there is less need to sell USD to buy foreign currency for external goods.
Worse, most of the international trade is intermediate goods. Like if you buy a car. The bumper could be from Poland and the engine is German (with screws from China and parts of Austria) and the suspension made in Mexico while everything is assembled in USA. And now tariffs do what?
Interesting times ahead... and I definitely do not want "interesting times" for international relations. It's much better to live in "boring times". But we don't chose which time we live in.
ALSO
There is more to the world than US. If you are just making stuff for developing world, you can basically ignore US sanction lists. It gets much more difficult on the high-end (tech wise) but this de-coupling can end up hurting US in the long run anyway. Especially if foreign relations take a downturn like previously under Trump.
So, not just US laws here... everyone wants to protect their "strategic" turf.