[News] TSMC Reportedly Enlists U.S. Legal Experts to Conduct Strict Contract Reviews on 7nm and Below

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Amid stringent regulations on China’s semiconductor development, TSMC is said to be requested by the U.S. to suspend shipments of all its 7nm or more advanced chips to the AI/GPU clients in China. According to the latest report from Commercial Times, TSMC has been proactively conducting reviews to ensure compliance with U.S. regulations.

As per the report, TSMC has enlisted American legal experts to comprehensively review existing contracts, and certain IC companies in Taiwan have seen their wafers in process (WIP) placed on hold, pending further clarification.

The report indicates that since early November, the Taiwanese foundry giant has ceased shipments of advanced process chips below 7nm to Chinese companies, particularly those related to AI training.

Industry insiders cited by the report added that China has developed countermeasures to tackle the issue, as it is currently capable of achieving 7nm production using multi-patterning lithography techniques. However, the production costs are reportedly high, which might be roughly equivalent to those of TSMC’s 3nm node.

It is worth noting that before stricter U.S. sanctions have been introduced lately, the impact on China seems to be less effective than anticipated. According to Commercial Times, China’s semiconductor companies have already developed the capability to produce 65nm lithography machines for mature nodes.

Citing information from China’s Ministry of Industry and Information Technology, the report suggests that domestically produced lithography machines in China can achieve a light source wavelength of 193nm, resolution ≤65nm, and overlay accuracy ≤8nm. These specifications reportedly indicate that the machines can reach numerical apertures (NA) of 0.82 for KrF and 0.93 for ArF dry lithography systems, suitable for processes at 110nm and 65nm or above, respectively.

According to the report, China has opted to adopt immersion deep ultraviolet (DUV) lithography machines starting at the 40nm process because lower-end processes were not cost-effective for multi-patterning. However, under the sanctions, there seems to be no alternative.

It is worth noting that a new round of U.S. export crackdown on China has been launched, as it is set to implement its third wave of restrictions on China’s semiconductor industry starting Monday, as per Reuters.

Maybe one of Biden’s largest scale restrictions, the new rules will include export bans targeting 140 companies, such as China’s chip equipment giant Naura Technology Group, as well as other Chinese semiconductor toolmakers, including Piotech and SiCarrier Technology. How and whether the new measures will curb the development of China’s semiconductor industry remains to be seen.

Read more

• [News] Four Key Takeaways on TSMC’s Reported Halt of 7nm and Below Chip Supplies to China
• [News] Samsung Reportedly Joins TSMC in Halting 7nm and Below AI Chip Supplies to China

(Photo credit: TSMC)