JAKARTA - China's nightmare is unlikely to end in the near future. The reason is, Taiwan Semiconductor Manufacturing Company (TSMC) will stop reducing GPUs for the country-based Biren Technology.
The TSMC move was reported for fear of being sanctioned by the United States (US) government. Earlier this month, the Commerce Department took steps to reduce Chinese company access to high-performance computing hardware and manufacturing equipment.
According to the US, China uses a supercomputer to design nuclear weapons and carry out remote surveillance of its citizens.
TSMC's decision comes just months after the US government passed the CHIPS Act, which includes billions of subsidies to support US chip manufacturing.
Likewise, AMD and Nvidia are also no longer allowed to make GPUs for Chinese companies, following export control rules.
Launching Tom's Hardware, Wednesday, October 26, Biren Technology does have a BR100 GPU and it seems that TSMC is worried because BR100 can outperform Nvidia A100 and the GPU of similar companies.
While TSMC is not based in the US, the Commerce Department requires companies that use US technology to comply with its laws.
However, if they fail to do so it can get the company added to the Bureau of Industry and Security Entity List (BIS), which prevents them from doing business with any US company or accessing US technology.
By landing on the Entity List, it is likely to paralyze small companies like Biren Technology. Previously, Huawei's list of entities had already been occupied by Huawei which made its business stalled.
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