The media has confirmed that AMD and Nvidia may suspend all AI, high-speed computing HPC and data center shipments in the Chinese mainland market. Analysts believe that this move may indirectly affect TSMC's performance.

According to Taiwanese media "Economic Daily", the legal entity pointed out that although the reduction in AMD and Nvidia shipments will affect TSMC, China's own development of GPUs also requires advanced processes, which is beneficial to TSMC.

According to a Reuters report today (1), American chip manufacturers AMD and Nvidia in mainland China have successively received notices from their headquarters to cut off the supply of high-end GPU chips to customers in mainland China.

Specifically, AMD suspends the shipment of all data center GPU cards MI100 and MI200 pairs to China; counts the shipments of Ml100 in mainland China; counts the list of shipped customers and shipment details of MI 200 in China.

NVIDIA has suspended the shipment of data center GPU cards A100 and H100 to all customers and all agents in mainland China, and other GPU cards will not be affected. The existing stock A100 GPU cards of various server OEMs can still continue to be delivered to their respective industry customers, and NVIDIA has not issued any notice to OEMs in mainland China.

In addition, the "Economic Daily" pointed out that there is news that Tencent, Baidu, Byte and other companies have verified that they have received the notification; there may be clear sanctions news in the future, but it is currently in prior communication.

Analysts said that AMD and NVIDIA are TSMC's top ten customers, accounting for about 10% of TSMC's revenue. AMD's AI accelerator Instinct MI200 for data centers will use TSMC's N6 and CoWoS packaging technologies; NVIDIA uses TSMC's N4. and CoWoS technology to create Hopper architecture data center GPU, and use TSMC N5 process and CoWoS technology to manufacture supercomputing Grace architecture CPU. If AMD and NVIDIA's shipments are reduced, it is possible that TSMC's chip investment will be reduced, and TSMC's performance may be affected.

In addition, industry insiders revealed that since the utilization rate of advanced process capacity has begun to decline and may continue for a period of time, TSMC plans to shut down some EUV equipment from the end of the year to save the huge power consumption of EUV equipment. This move may also affect TSMC's capacity to build 5G and HPC chips based on EUV processes.