US Order Blocking TSMC's AI Chip Shipments Won't Hurt Apple

Arthur T Knackerbracket has processed the following story:

A US order to TSMC to cut AI chip supplies to China over Huawei sanctions won't cause problems for Apple. However, Taiwan's prohibition of TSMC producing 2-nanometer chips elsewhere could make an impact.

U.S. sanctions against Huawei has caused problems for TSMC over attempts by intermediaries to order certain AI-based chip designs on Huawei's behalf. From Monday, TSMC is suspending shipments of the AI-focused chips to China, on the orders of the United States.

[...] The blocked shipments by the Department of Commerce certainly impacts TSMC's sales with Huawei, but it could also cause other problems.

[...] Lower production means it has to shift around its production line to maximize the utility of its facilities. For its relatively new Arizona production plant, its relatively low amount of production could make it a viable facility to temporarily mothball.

While largely risking the Arizona investment temporarily, the order probably won't do much to harm Apple's supplies from the company.

Apple relies on assembly partners in China to produce its products, including the iPhone, and TSMC's chips therefore need to be imported. As chips that have AI benefits in the form of the Neural Engine, this is the sort of chip that the Commerce Department is wary about handing over to Huawei.

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