NVIDIA Adds Urgent Order to A100

NVIDIA Adds Urgent Order to A100·H100 TSMC····The Background?

It has been reported that NVIDIA has recently placed an urgent order addition for the A100 and H100 to TSMC.
The reason for NVIDIA’s addition of urgent orders is interpreted as the grace period of semiconductor export regulations applied by the US as it checked the Chinese market. Initially, the U.S. regulated the export of products under the 14nm process and production equipment, including products under the 10nm process.

However, it is news that a grace period has been applied to supply A100 chips until March 1, 2023 and supply H100 chips until September 1, 2023, as the relevant controls could cause a major blow to the US industry if implemented immediately.

Therefore, it is interpreted that NVIDIA has urgently placed an additional order to TSMC as it is able to supply products to the Chinese market.

US government tightens ban on semiconductor exports to China, ‘expanding 14nm’

The US government’s strengthening of semiconductor exports to China is getting stronger.

While the Biden administration’s sanctions on the Chinese semiconductor industry continue, it is planning to expand the existing 10nm process to 14nm process semiconductor manufacturers.

Through this, it is interpreted that a stronger export ban will be applied as an additional 14nm process is included along with the existing 10nm export semiconductor equipment export sanctions. The enforcement of the export ban will begin in October.

Previously, the US government included NVIDIA’s AI graphics processing units A100 and H100 and AMD’s AI GPU Instinct MI250 to the list of export bans to China and Hong Kong to check China’s global AI leadership.

In addition, finished products such as the DGX100 loaded with semiconductors subject to export control will also be included in the export control target.

TSMC, semiconductor supply shortage problem ‘cheap chip shortage’ serious

Although there are recent improvements related to the shortage of semiconductors, the CEO of TSMC said that the problem of semiconductor shortages is more serious than the shortage of cheap chips.

The news was noted by Wei, TSMC’s CEO, at a technology symposium, saying, “It’s a very cheap chip that’s causing production problems in the industry as a whole.” We are trying to find a cheap chip,” he emphasized.

Similarly, the auto industry has lost billions of dollars due to chip shortages, he added, adding that the shortage of $0.5 radio chips has delayed production of the $50,000 car.

In response, TSMC said that its existing factories could not meet the demand for low-cost chips, and it is currently building a new 28nm-based factory in China. He also pointed out that the reason for this shortage of semiconductor chips is that the number of chips used in modern devices has increased every year.

While automobiles use 15% more silicon every year, the number of power management chips in smartphones has increased by at least two to three times over the past five years, leading to a severe semiconductor shortage.

 

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