Tech war: new US restrictions could deny China access to chip making services from TSMC, Samsung

The potential restrictions could target foreign wafer fabs with GAA capability, making it impossible for them to serve China-based clients

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Workers in the clean room at US memory chip maker Micron Technology, June 10, 2024. Photo: Bloomberg

Published: 8:00pm, 12 Jun 2024Updated: 8:17pm, 12 Jun 2024

A reported US move to restrict China’s access to an advanced semiconductor architecture and high-end memory chips for artificial intelligence (AI) applications could cut it off from access to leading wafer foundries such as Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung Electronics, analysts said.

The Biden administration is considering more restrictions on China’s access to a cutting-edge chip architecture known as gate all-around, or GAA, and high bandwidth memory (HBM) AI memory chips, according to a Bloomberg report, citing sources. GAA refers to the next-generation structure of transistors, used in advanced chip manufacturing at the 3-nanometre node and below – levels that Chinese foundries have yet to reach.

Analysts said the potential restrictions could target foreign wafer fabs with GAA capability, making it impossible for them to fabricate chips for China-based clients.

“It’s possible that the US can rally allied countries capable of manufacturing GAA structures not to produce for Chinese chip design firms,” said Brady Wang, associate director at research firm Counterpoint.

The logo of TSMC is seen at southern Taiwan science park in Tainan, Taiwan, December 29, 2022. Photo: Reuters

In 2022, Samsung started to use the GAA transistor architecture for the 3-nm process, while (TSMC) - the world’s largest contract chip maker - lists a variant of GAA in its technology roadmap for its 2-nm-grade N2 process, according to the company’s website.

Washington first restricted China’s access to the technology in August 2022, when it prohibited GAA-capable electronic design automation (EDA) software from being exported to countries including China. Last October, the US tightened the net by adding licensing requirements for China-bound shipments of etching and deposition tools required to achieve GAA structures in logic and memory chips.