[News] TSMC Reportedly Halts 14/16nm Chip Shipments to Chinese IC Firms unless Packaged by Approved OSATs

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As the former Biden administration tightened chip export controls, targeting processors with 30 billion transistors at 16/14nm or smaller nodes, TSMC followed suit. Chinese media ijiwei reports that TSMC notified many Chinese IC firms it would halt shipments of 16/14nm and below products from January 31, 2025, unless they use an approved OSAT by Bureau of Industry of U.S. and Security and provide certification.

Ijiwei confirmed with multiple Chinese IC firms that they must now shift affected chips to a U.S.-approved packaging facility, with those lacking an authorized partner facing severe delays.

A source cited by ijiwei also revealed that some firms must fully outsource tape-out, production, packaging, and testing for certain sensitive orders. With no intervention allowed, the series of requirements poses significant challenges for Chinese IC design firms, the report suggests.

TSMC’s latest actions indicate that it is further aligning with the U.S. BIS in tightening scrutiny on China’s advanced-node “white gloves,” as highlighted in the ijiwei report. TSMC’s shipment restrictions now aim to make China’s advanced-node chip production and packaging more transparent.

On top of that, in early November, 2024, 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 a previous report from Commercial Times, TSMC has been proactively conducting reviews to ensure compliance with U.S. regulations.

According to TSMC’s previous data, 3nm shipments accounted for 26% of its wafer sales revenue in Q4 2024, while 5nm shipments made up 34%, and 7nm shipments contributed 14%. Overall, advanced nodes (7nm and below) generated 74% of the total wafer sales revenue for the quarter.

Read more

• [News] Biden Tightens Control on 14/16nm Chip Exports; Expands Blacklist to Include China’s Sophgo
• [News] TSMC: U.S. Chip Export Controls “Manageable”; Arizona Fabs Progress Ahead of Schedule

(Photo credit: TSMC)