Analyst: US upgrade of AI chip export controls has no impact on TSMC

Analysts said that the US government's expansion of restrictions on the export of AI chips to Chinese Mainland has negligible impact on TSMC.

In the medium and long term, the new restrictions issued by the US may result in TSMC losing orders from American chip design manufacturers such as NVIDIA AI chips. However, the potential order loss may be compensated by chip design companies in Chinese Mainland placing additional orders for unrestricted products.

Thanks to the continuous growth in demand for AI chips and the steady development of next-generation manufacturing processes, TSMC will be the best-performing company in wafer foundries from 2023 to 2024.

On October 17, the United States launched a new round of semiconductor export control regulations, which not only restricted the sale of Nvidia castrated AI chips to Chinese Mainland, but also included 13 GPU enterprises in Chinese Mainland, including Piron Technology and Moore Thread, in the "Entity List".

The U.S. government will also require enterprises to obtain licenses to sell chips to more than 40 countries/regions. Enterprises in Chinese Mainland can use these licenses as intermediaries to circumvent U.S. regulations. The Biden government also put forward licensing requirements for chip manufacturing equipment in 21 countries/regions outside Chinese Mainland, and expanded the list of equipment prohibited from entering these countries/regions.