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The Peter Zeihan Podcast Series

TSMC Cuts China's Access to Advanced Chips || Peter Zeihan

Nov 22, 2024
Discover the latest developments in the semiconductor industry as a major player cuts advanced chip orders from Chinese companies. The discussion highlights the geopolitical tensions influencing tech policies across US administrations. Dive into the intriguing differences between DUV and EUV lithography technologies, and understand their implications for global semiconductor access. The implications of these changes resonate far beyond the tech world, impacting international relations and technological dominance.
08:00

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Quick takeaways

  • TSMC's decision to restrict chip orders from China highlights ongoing challenges in enforcing US sanctions on advanced technology transfer.
  • The contrasting strategies of the Trump and Biden administrations illustrate different approaches to managing technological competition with China.

Deep dives

TSMC's Order Ban and Its Implications

The Taiwanese semiconductor company TSMC has announced it will no longer accept orders for chips that are seven nanometers or smaller from any Chinese entity, effectively tightening restrictions on high-end semiconductor sales to China. This decision was prompted by the discovery of TSMC chips in a Huawei product, raising concerns that current sanctions were not adequately preventing technology transfers. Within 48 hours of TSMC's announcement, the Biden administration expressed its intent to support the enforcement of this ban, indicating a collaborative strategy focusing on preventing Chinese access to advanced technology. The contrasting approaches of the Trump and Biden administrations towards China, with Trump emphasizing tariffs and Biden favoring a targeted, bureaucratic approach, highlight differing philosophies on managing foreign policy and technological competition.

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