Chinese tech firms like MetaX and Tencent-backed Enflame create less-advanced chips so that TSMC can keep producing them.
China wants to keep sourcing computer chips from Taiwan Semiconductor Manufacturing Co. (TSMC), and some of its tech firms are now reportedly scaling back chip power to keep production going.
Four sources tell Reuters that China-based tech firms are now making less-powerful chips with TSMC so it can continue to source manufacturing from the Taiwan company, which uses US chipmaking tools. TSMC is one the world’s largest chipmakers and supplies processors for tech giants like Apple and Nvidia, to name a few.
Chinese firms MetaX and Enflame both submitted less-powerful chip designs to TSMC late last year so that the producer would continue to make them, according to the report.
