New US sanctions halt TSMC shipments to more mainland China chip design firms

TSMC has recently notified a large group of Chinese mainland IC (Integrated Circuit) design companies that shipments of 16nm/14nm and below products will be suspended unless they are packaged by an OSAT (Outsourced Semiconductor Assembly and Test) company on the US Department of Commerce’s Bureau of Industry and Security (BIS) whitelist, according to a report by Chinese media outlet Jiwei. Last month, the BIS introduced new export control regulations under the Export Administration Regulations (EAR), requiring semiconductor manufacturers and OSAT providers to conduct enhanced due diligence on chips using 16nm/14nm nodes or more advanced process nodes. The regulations have also seen BIS introduce a whitelist of chip design companies and OSAT providers. Effective Jan. 31, the new rules have already begun impacting the production and delivery of advanced chips for some Chinese semiconductor companies. Foundries such as TSMC can manufacture advanced process chips for whitelisted design firms without restrictions, but non-whitelisted companies must either apply to the US Department of Commerce or ensure their final packaging and testing are handled by a whitelisted OSAT provider. [Jiwei, in Chinese]