Chinese AI chip firms downgrading designs to secure TSMC production

Some Chinese AI chip companies are now designing less powerful processors to retain access to Taiwan Semiconductor Manufacturing Co (TSMC) production in the face of US sanctions, four people with knowledge of the matter said.

Aiming to impede breakthroughs in artificial intelligence and supercomputing by China’s military, Washington has imposed a series of export controls on highly sophisticated processors from companies such as Nvidia and on chip manufacturing equipment. Those restrictions also prevent TSMC – which uses US chipmaking tools – as well as other overseas chip manufacturers from taking orders to produce them.