US Chip Restrictions on China Won鈥檛 Directly Affect Taiwan, According to MOEA
18 April 2025 路 Uncategorized 路
Source: 路 https://technews.tw/2025/04/16/no-direct-impact-on-taiwans-revenue/
The U.S. has announced stricter export permit requirements for sales of NVIDIA H20 and AMD MI308 chips, as well as similar products destined for China. According to Taiwan鈥檚 Ministry of Economic Affairs (MOEA), Taiwanese companies are not involved in the direct sale of these American chip manufacturers' offerings within the Chinese market; therefore, this restriction is expected to have no immediate impact on their revenue due to continued global demand growth for AI chips.
Continuing its tightening control over high-tech product exports to China, the U.S. has implemented new export permit requirements specifically targeting NVIDIA H20 and AMD MI308 chips, as well as equivalent products. The MOEA clarified that Taiwan鈥檚 semiconductor companies primarily provide professional wafer fabrication services globally without participating in sales for these American manufacturers' Chinese market offerings; consequently, this restriction is not anticipated to directly affect their revenue given the sustained global demand growth for AI chips.
The ministry also noted that TSMC鈥檚 China plant mainly focuses on mature process technologies. Reuters reported that NVIDIA must now obtain a permit before exporting H20 chips to China under U.S. export controls; today, the company announced it would incur $5.5 billion in costs related to these restrictions鈥攁 significant consideration given China's importance as an essential market for these products.
These efforts by American officials aim to maintain leadership in artificial intelligence (AI) competition and prevent advanced chip sales to China, making NVIDIA鈥檚 AI chips a key focus of U.S. export controls. In response to the implementation of such measures, NVIDIA has begun designing new chips that closely adhere to American restrictions.
Continuing its tightening control over high-tech product exports to China, the U.S. has implemented new export permit requirements specifically targeting NVIDIA H20 and AMD MI308 chips, as well as equivalent products. The MOEA clarified that Taiwan鈥檚 semiconductor companies primarily provide professional wafer fabrication services globally without participating in sales for these American manufacturers' Chinese market offerings; consequently, this restriction is not anticipated to directly affect their revenue given the sustained global demand growth for AI chips.
The ministry also noted that TSMC鈥檚 China plant mainly focuses on mature process technologies. Reuters reported that NVIDIA must now obtain a permit before exporting H20 chips to China under U.S. export controls; today, the company announced it would incur $5.5 billion in costs related to these restrictions鈥攁 significant consideration given China's importance as an essential market for these products.
These efforts by American officials aim to maintain leadership in artificial intelligence (AI) competition and prevent advanced chip sales to China, making NVIDIA鈥檚 AI chips a key focus of U.S. export controls. In response to the implementation of such measures, NVIDIA has begun designing new chips that closely adhere to American restrictions.