This is an excerpt from an article in the Magazine “THE DIPLOMAT”.

China is aggressively advancing its artificial intelligence (AI) research and production, aiming to achieve greater autonomy in the China-U.S. tech competition through local AI chip design. However, China faces a significant challenge: its leading wafer manufacturer, Semiconductor Manufacturing International Corporation (SMIC), can only produce chips of 7 nanometers, which is relatively outdated technology. 

To achieve breakthroughs in AI chips and high-performance computing products, China must depend on advanced technology from Taiwan Semiconductor Manufacturing Company (TSMC). But how?

If Chinese AI chip designers collaborate with TSMC to develop new AI chips, switching to alternative chipmakers quickly becomes unfeasible. This dependency underscores the business mechanisms within TSMC-China chip design partnerships and illustrates how Taiwan and China’s semiconductor supply chains are potentially intertwined amid the China-U.S. tech war.

Read more by clicking the following link.

https://thediplomat.com/2024/09/unveiling-the-remote-poaching-model-taiwans-strategy-to-limit-chinas-ai-chip-progress