Despite intensifying tension between the US and China that may lead to more restrictions on AI GPUs against China, China-based AI chip design houses are expanding their chip orders for TSMC's 7nm process since the first quarter of 2023.
According to recent rumors, the US government may impose tighter export restrictions on high-end AI chips against China; however, things seemed normal at SEMICON China 2023, held June 29 to July 1 in Shanghai, with over 100,000 visitors and 1,219 exhibitors. Taiwan-based and global equipment and materials suppliers were trying to secure orders.
The developments imply that due to its huge market and opportunities, China's semiconductor industry has not come to a standstill as a result of US restrictions. China's chip players are still seeking avenues of growth, including import substitution and expanding their investments in AI chips.
Sources told DIGITIMES that China's indigenous AI HPC chip suppliers are not on the list of export bans, and at least dozens of companies are continuing their investments, with T-Head and Sanechips expanding their orders for TSMC's 7nm chips since the first quarter of the year.
DIGITIMES reported that senior executives at T-Head, which is developing chips based on Arm and RISC-V architectures, visited TSMC in Taiwan several times and expanded their orders with TSMC. DIGITIMES reported that TSMC's order from T-Head in the second half of the year will double that for the year's first half.
On the other hand, Sanechips doubled their orders in TSMC in the first and second quarters of the year, becoming one of TSMC's top three customers in China and an important customer in the HPC segment. DIGITIMES reported that despite a delayed timeline, the semiconductor industry in China will achieve self-reliance, supported by ongoing government subsidies.
The US government imposed export restrictions on AI GPUs against China in October 2022, and there have been rumors that the US may impose tighter restrictive measures, including an export ban on high-end AI chips, such as AMD's and Nvidia's AI GPUs designed specifically for China. Due to sanctions and export bans by the US, SMIC, previously progressing toward the 7nm process, was forced to change tack and is expanding its investments in legacy nodes rather than advanced nodes, leading to slower development in AI and HPC in China.
Sources told DIGITIMES that China tried to retaliate against the recent US restrictive measures by imposing export bans on gallium and germanium, which may negatively impact the compound semiconductor and optical communications industries.
Still it is believed that China's sanction against Micron in critical IT infrastructure may have a limited effect on the US-based memory maker. There will be alternatives to the gallium and germanium exported from China. The latest retaliation should be seen as a way to gain more bargaining chips in bilateral talks between the two nations.
