(Translated by https://www.hiragana.jp/)
Analysis: How Chinese Chipmakers Could React to Tighter U.S. Export Controls on Mid-Tier Nodes - Caixin Global
Caixin

Analysis: How Chinese Chipmakers Could React to Tighter U.S. Export Controls on Mid-Tier Nodes

Published: Jan. 17, 2025  4:58 a.m.  GMT+8
00:00
00:00/00:00
Listen to this article 1x
Close-up of a semiconductor wafer. Photo: Bloomberg
Close-up of a semiconductor wafer. Photo: Bloomberg

The United States has expanded restrictions on chip exports to include 16/14 nanometer nodes, prompting The Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) to seek exemptions for affected customers. At the same time, China’s semiconductor industry is accelerating efforts toward self-reliance and the development of domestic supply chains in reply to the escalating limitations.

You've accessed an article available only to subscribers
VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article
Open WeChat and scan the QR code
DIGEST HUB
Digest Hub Back
Explore the story in 30 seconds
  • The U.S. expanded chip export restrictions to include 16/14nm nodes, pushing TSMC to seek exemptions, while China accelerates semiconductor self-reliance efforts.
  • New U.S. rules require licensing for advanced chip exports, targeting high-performance AI chips, but not affecting smaller-scale automotive chips.
  • Chinese firms shift to domestic alternatives, with over 95% localization in new data centers by late 2024, as U.S. restrictions prompt increased domestic production.
AI generated, for reference only
Who’s Who
Taiwan Semiconductor Manufacturing Company Ltd. (TSMC)
Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) is seeking special licenses to aid customers affected by the new U.S. chip export restrictions targeting 16/14nm nodes. TSMC's 16/14nm chips are used in products like smartphones and PC CPUs. Although Taiwan is exempt from these restrictions, further curbs could impact demand from TSMC's clients. The company plays a crucial role in the semiconductor supply chain, particularly for Chinese automotive and cockpit chipmakers.
Samsung
The article mentions that many Chinese automotive and cockpit chipmakers rely on TSMC and Samsung for production. However, it does not provide further details about Samsung's specific role or response to the U.S. chip export restrictions.
Nvidia
Nvidia has faced U.S. restrictions on exporting AI chips like A100 and H100 GPUs to China since 2022. In response, Nvidia offered downgraded versions for the Chinese market. However, further restrictions in 2023 led Chinese firms to adopt domestic alternatives like Huawei's Ascend GPUs. In February 2024, Nvidia listed Huawei as a key competitor in the AI chip market, alongside Intel and AMD.
Huawei
Huawei is identified as a key competitor in the AI chip market, facing U.S. export restrictions. In response, Chinese firms are increasingly utilizing Huawei’s Ascend GPUs as alternatives to Nvidia's offerings. Despite the curbs, Huawei's domestic chips are playing a crucial role in China’s tech sector, underscoring efforts toward technological self-reliance.
China Mobile
China Mobile, a Chinese cloud provider, is embracing domestic chips and has achieved over 95% localization in new data centers by late 2024. The Hohhot Data Center, operational in April 2024, and the Harbin center, launched in August, almost entirely rely on domestic GPUs.
Alibaba
The article mentions that Alibaba is collaborating with Chinese cloud providers and domestic chip makers, such as Huawei, to optimize systems for local technology. These efforts are part of a broader move toward adopting domestic chips in response to U.S. export restrictions.
Baidu
Baidu, driven by concerns over supply chain security, is exploring hybrid computing solutions incorporating Huawei’s Ascend GPUs. This move aligns with other Chinese tech giants adapting to domestic technology amidst intensified U.S. export restrictions on advanced chips.
Meituan
The article mentions Meituan in the context of exploring hybrid computing solutions that incorporate Huawei’s Ascend GPUs. This is part of a broader effort by Chinese tech giants to ensure supply chain security and adapt to the evolving semiconductor landscape amidst U.S. export restrictions.
Intel
The article does not provide specific information about Intel other than mentioning that Nvidia, for the first time, listed Huawei as a key competitor in the AI chip market, along with Intel and AMD, as a result of China’s increasing self-reliance in chip production amidst U.S. export restrictions.
AMD
The article mentions AMD as one of the key competitors in the AI chip market, alongside Nvidia and Huawei, according to a February 2024 listing by Nvidia. This highlights AMD's notable presence and competition in the advanced GPU and AI chip sector globally.
Shanghai Biren Intelligent Technology Co. Ltd.
Shanghai Biren Intelligent Technology Co. Ltd. is a Chinese GPU firm added to the U.S. export restriction list, requiring foundries to obtain a BIS license before shipping chips to them. This inclusion is part of the U.S. strategy to hinder China's semiconductor advancements, specifically targeting firms involved in advanced GPU production.
Moore Threads Technology Co. Ltd.
Moore Threads Technology Co. Ltd. is a Chinese GPU firm that has been added to the U.S. restrictions list, meaning that foundries must obtain a BIS license before shipping chips to the company. This inclusion signifies increased U.S. export control measures targeting Chinese GPU firms as part of efforts to hinder China's technological advancements, particularly in AI development.
AI generated, for reference only
What Happened When
2022:
The U.S. has tightened controls on AI chip exports, restricting Nvidia's A100 and H100 GPUs from entering the Chinese market.
2023:
Further U.S. restrictions led Chinese firms to shift to domestic alternatives such as Huawei's Ascend GPUs.
February 2024:
For the first time, Nvidia lists Huawei as a key competitor in the AI chip market, along with Intel and AMD.
April 2024:
The Hohhot Data Center becomes operational, relying almost entirely on domestic GPUs.
August 2024:
The Harbin data center is launched, also relying on domestic GPUs.
Late 2024:
Chinese cloud providers achieve over 95% localization in new data centers.
January 15, 2025:
The U.S. Department of Commerce's Bureau of Industry and Security introduces new rules requiring broader licensing for advanced chip exports.
January 16, 2025:
Mark Liu, chairman and CEO of TSMC, announces during the company's quarterly earnings call that TSMC is applying for special licenses to assist affected customers.
AI generated, for reference only
Subscribe to unlock Digest Hub
SUBSCRIBE NOW
NEWSLETTERS
Get our CX Daily, weekly Must-Read and China Green Bulletin newsletters delivered free to your inbox, bringing you China's top headlines.

We ‘ve added you to our subscriber list.

Manage subscription
PODCAST
Caixin Deep Dive: The Consumption Conundrum Dividing China’s Economists
00:00
00:00/00:00