Although the decision of TSMC to suspend production for Biren Technology has already been decided, Biren's products did not meet the US threshold for restrictions.

(Photo : Annabelle Chih/Getty Images)
HSINCHU, TAIWAN - SEPTEMBER 16: Taiwan Semiconductor Manufacturing Company, Limited (TSMC), the world's most valuable semiconductor company at Hsinchu Science Park on September 16, 2022 in Hsinchu, Taiwan. Taiwan's semiconductor manufacturing capabilities are crucial to global supply chains, with megacap companies like Apple, Nvidia and Qualcomm heavily dependent on the island's exports. Taiwan accounts for some 60 percent of global semiconductor foundry revenue, according to media reports. 

Suspension of Production

Taiwan Semiconductor Manufacturing Company halted the production of Biren Technology's advanced silicon in order to comply with the regulations of the United States, based on a report from The South China Morning Post.  

Biren Technology is a start-up company in China and as per the report, the products that they have been offering to the public outperform Nvidia's A100 chips, which are now banned in China. The chip maker decided to halt the production even though the company did not have a conclusion regarding Biren's products and if they really meet the US threshold for restrictions.

Meanwhile, Bloomberg reported that the artificial intelligence chips that are produced by TSMC are not covered by the export restrictions of the United States as the specs of its did not meet the curbs' criteria. No comments were given by both TSMC or Biren as no there are no responses to SCMP's questions.  

Semiconductor Restrictions

These restrictions were implemented for China to limit its development of technology that can be used to aid the country's military and access advanced fabrication. The Commerce Department of the United States Burau of Industry and Security announced these restrictions for semiconductors just this month, October 7th. 

As per a Commerce Department Spokesperson, BIS has been extending its effort to the ones who are affected by its restrictions. They added that "While BIS cannot comment on company-specific actions, we expect all companies to comply with export controls." 

As a response, TSMC complied with the regulations since it will be continuing to serve its consumers globally. This was the company's goal ever since and it was stated by the Chief Executive Officer C.C. Wei during the company's earnings call. 

Also Read: Apple Accepts TSMC Chip Price Hike for iPhone 15: Report

Last month, a report from Reuters revealed that a preliminary meeting was conducted in Taiwan with the agenda of future collaboration to create semiconductors and supply the world in the future, which was initiated by the United States and other world leaders that dived into chip production. This was confirmed by Taiwan Economy Minister Wang Mei-Hua Wang.

Full cooperation from the countries that are present at the meeting was the number one agenda of Taiwan as these countries were known as powerhouse regarding chips. Through this, it ensures Wang that the supply chain in the world will be resilient as ever.

Related Article: United States' Chip 4 Addresses 'Supply Chain Resilience' Amidst Partners Including Taiwan

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Written by Inno Flores