The United States intends to tighten chip control on the mainland again, the current President Biden before leaving office, the fastest 10 announced that pull up on the mainland AI and other advanced chip export restrictions, the industry and rumors, the U.S. will expand the scope of control of process technology, from the current 7-nanometer advanced process, extending to 16-nanometer mature process, TSMC and other fab mainland orders face greater challenges.

TSMC will be held in the next 16 days of the law will be held, is now in the law will be held before the silence period, now rumors of the United States intends to pull up the land semiconductor control news, triggering concern, everything must wait until the day of the law will be explained by the TSMC executives.

The financial report shows that TSMC 16 nm revenue accounted for about 8% in the third quarter of 2024, and the legal person estimated that the relevant customer source if the headquarters location distinction, not all of them are customers in mainland China. Consideration of TSMC 3 nm and 5 nm family of advanced processes to expand the contribution of the industry to assess, if the U.S. will expand the control to 16 nm, the impact should be limited and controllable, but instead of 16 nm revenue accounted for a higher proportion of manufacturers such as Grofounders have to be observed. On the other hand, people familiar with the matter reported that the outgoing Biden administration intends to further tighten restrictions on the export of advanced chips, such as AI, to prevent advanced technologies from falling into the hands of the mainland and Russia. The new measures may be unfavorable to U.S. chip giants such as NVIDIA and Supermicro. Nvidia, super micro 9 U.S. stocks are lower before the market. Sources familiar with the matter revealed that the Biden Administration study proposed AI chip sales restrictions, expanding to most regions of the world, in order to control the popularization of AI technology.

It is understood that a small number of U.S. allies listed in the first level, basically can continue to obtain U.S. chips without restriction. Hostile countries are listed in the third level, which is tantamount to being blocked from importing advanced chips. Tier 2 countries will be limited in the total amount of chip power they can obtain. Taiwan, Japan, South Korea, and Europe are in Tier 1, while China and Russia are in Tier 3. Southeast Asia and the Middle East are in Tier 2 and face new restrictions to prevent AI chips from these regions from flowing into China and Russia. NVIDIA opposed the proposal and issued a press release saying that the Biden administration‘s imposition of export controls on much of the world before it left was too big a shift in policy, and that instead of helping to reduce the risk of misuse, it would threaten economic growth and U.S. leadership.