AllYouCanTech

TSMC to Halt Manufacturing of 7nm Chips for Clients in China

# US Limitations on Semiconductor Technology and Their Consequences for China’s AI Goals

The global semiconductor sector is experiencing major transformations as tensions between the United States and China intensify. Central to this issue is the US government’s growing limitations on the export of sophisticated semiconductor technology to China, a move that is altering the dynamics of artificial intelligence (AI) development and chip production.

## Taiwan Semiconductor Manufacturing Company (TSMC) and Its Involvement in the Dispute

Taiwan Semiconductor Manufacturing Company (TSMC), the largest contract chipmaker in the world, has emerged as a focal point in this geopolitical contention. TSMC is crucial to the international semiconductor supply chain, producing some of the most advanced chips utilized in AI, smartphones, and various high-tech gadgets. Historically, the company has been a significant supplier to both US and Chinese technology behemoths, but recent actions by the US government have compelled TSMC to reevaluate its partnerships with Chinese enterprises.

### TSMC Ceases Production of Advanced AI Chips for Chinese Entities

In a notable turn of events, TSMC has notified Chinese chip design firms that it will cease the production of their leading-edge AI chips, particularly those built on process nodes of 7 nanometers or smaller. This choice is a direct outcome of mounting pressure from the US government, which has implemented strict export restrictions intended to limit China’s access to state-of-the-art semiconductor technology.

Sources close to the situation indicate that TSMC’s decision will be effective as soon as next Monday. Future shipments of advanced AI chips to Chinese clients will be contingent upon an approval process that is likely to involve Washington. This maneuver is expected to significantly affect Chinese technology firms such as Alibaba and Baidu, which have made substantial investments in AI chip design and depend on TSMC for production.

### US Export Restrictions and Their Effect on China’s AI Sector

The US government has intensified its initiatives to restrict China’s access to advanced semiconductor technology, especially in AI. American firms like Nvidia have already been prohibited from exporting their most cutting-edge processors to China, and the US has established an extensive export control framework aimed at preventing chip manufacturers globally from supplying advanced AI processors to Chinese companies.

TSMC’s choice to stop producing advanced AI chips for Chinese customers is perceived as a proactive step to adhere to these US regulations. The company is also being scrutinized by the US Commerce Department, which is investigating how advanced chips made by TSMC for a Chinese customer ended up in a Huawei AI device. Huawei, a major Chinese technology corporation, faces numerous US sanctions and export restrictions.

### The Wider Implications for Chinese Tech Titans

TSMC’s suspension of advanced AI chip production could have extensive repercussions for Chinese tech leaders, especially those heavily invested in AI research and development. Companies such as Baidu, which has been advancing its Kunlun series of AI chips, might encounter significant challenges in their AI pursuits. Baidu’s Kunlun II processor, for instance, relies on TSMC’s 7-nanometer technology, and the company has been promoting these chips as integral to its AI cloud framework.

Other Chinese AI chip design startups, including Horizon Robotics and Black Sesame International Holding, may also face challenges due to TSMC’s updated restrictions. Both companies have reported that their latest generation of AI chips, intended for uses like autonomous vehicles, is being produced by TSMC at the 7-nanometer process.

### TSMC’s Strategic Stance in the Midst of US-China Tensions

TSMC’s compliance with US export restrictions is not merely about regulatory adherence; it also reflects a strategic decision to sustain its status as a reliable partner for US corporations and the US government. The company is eager to avoid being perceived as uncooperative or unreliable, especially as the US moves towards increasing domestic semiconductor manufacturing capabilities.

Former US President Donald Trump has been outspoken in his criticism of Taiwan’s dominance in the semiconductor sector, accusing the island of “robbing” the US chip industry. Trump has also proposed that TSMC should relocate its production back to the US after receiving significant subsidies for establishing fabrication plants in America. While TSMC’s recent choices are not explicitly aimed at satisfying Trump, they do highlight the company’s commitment to aligning with US priorities.

### The Outlook for AI Chip Manufacturing

The ongoing US-China technological conflict is poised to redefine the global semiconductor landscape in the years ahead. As the US continues to tighten its control over advanced semiconductor technology, Chinese companies might be driven to look for alternative suppliers or invest in building their own domestic chip manufacturing capabilities. Nevertheless, developing a semiconductor supply network from the ground up is a complicated and lengthy task, and China could struggle to keep pace with the technological advancements of companies like TSMC.

For TSMC, the short-term effects of its decision to cease AI chip production for Chinese firms are anticipated to be minimal regarding revenue. The company

Notepad.exe Gets AI Integration Through Ongoing Maintenance Updates

# Windows Insider Updates: Notepad with AI, Paint Features, and Prism x86 Emulator Enhancements

Microsoft is advancing its Windows ecosystem by integrating new functionalities that merge artificial intelligence (AI) with traditional applications, while also boosting performance for contemporary hardware. In the latest Windows Insider updates, Notepad and Paint benefit from significant AI-based enhancements, and the Prism x86 emulator for ARM Windows devices receives added CPU instruction support. Here’s an in-depth overview of the recent updates.

## AI-Enhanced Rewrite Feature in Notepad

Notepad, a classic and straightforward application within the Windows operating system, has gained renewed interest in recent times. Historically, it remained largely stagnant for many years, but with the launch of Windows 11, Microsoft has been progressively modernizing the app. Recent updates have introduced a visual overhaul, spellcheck, autocorrect, and even tabbed windows.

Now, Microsoft is ushering Notepad into the AI age with the launch of the **Rewrite** feature. This innovative tool, currently available in preview for Canary and Dev Windows Insiders, utilizes generative AI to assist users in modifying the tone, wording, and length of highlighted text. By selecting a sentence or paragraph, users can opt for one of three AI-generated rewrite choices or ask for additional suggestions.

The Rewrite feature operates on the same cloud-based AI framework that supports **Copilot**, Microsoft’s AI assistant. This means the processing occurs on Microsoft’s servers rather than on the user’s CPU, GPU, or NPU. To access this feature, users need to sign in with a Microsoft account. Initially, it is available to users in the United States, France, the United Kingdom, Canada, Italy, and Germany.

For those who prefer not to engage with AI features or avoid signing in with a Microsoft account, there’s encouraging news. Microsoft has also refined Notepad’s performance, ensuring a **35-55% enhancement in launch times** for the majority of users.

## AI Features in Paint: Generative Fill and Erase

Alongside Notepad, Microsoft’s Paint app is also being upgraded with AI capabilities. Paint, another enduring application, has recently witnessed enhancements with several image-generation and editing tools. The most recent update brings **Generative Fill** and **Generative Erase** options.

– **Generative Fill** enables users to select a portion of an image and provide a text prompt to populate that area with AI-generated content. This feature is exclusive to **Copilot+ PCs** powered by **Snapdragon X Elite** processors, which are built to handle advanced AI functions.

– **Generative Erase** is accessible on any Windows 11 PC. This functionality allows users to remove items from an image and attempts to reconstruct the background of the erased object, making it a flexible instrument for image alteration.

These AI-driven tools elevate Paint closer to professional-quality image editing applications, enhancing its utility for both casual users and professionals.

## Prism x86 Emulator: Added CPU Instruction Support

On the technical front, Microsoft has made advancements in boosting performance for ARM-based Windows devices. The **Prism x86 emulator**, enabling x86 applications to run on ARM-powered Windows PCs, has undergone a substantial update in the latest **Windows Insider Canary channel build**.

This update adds support for newer x86 CPU instructions, essential for running demanding games and professional applications. Specifically, it introduces support for **AVX** and **AVX2** extensions, which are already available in Windows 11 24H2 for Adobe Premiere Pro. With this update, these extensions will be accessible across all applications, enhancing the performance of ARM-based devices for a wider variety of software.

However, support for **AVX512** extensions is still lacking, although this is less of an issue as even modern Intel processors have gradually phased out AVX512 support in recent years. Additionally, the new extensions are limited to fully 64-bit Intel applications, meaning that 32-bit applications or hybrid 64-bit apps using 32-bit components will not benefit from these enhancements.

## Conclusion

Microsoft’s latest Windows Insider updates illustrate its dedication to incorporating AI into everyday applications while enhancing performance for modern hardware. The introduction of the AI-driven Rewrite feature in Notepad, along with the generative fill and erase capabilities in Paint, adds significant functionality to these traditional apps, amplifying their versatility and power. Meanwhile, enhancements to the Prism x86 emulator ensure that ARM-based Windows devices can manage more demanding software, making them a suitable choice for both professionals and gamers.

As Microsoft continues to refine these features, it is evident that AI integration and hardware optimization will be pivotal in the future of Windows. Whether you are a casual or power user, these updates are set to improve your experience with Windows 11.

Australia Authorizes Rocket Launches; Russia Finishes Satellite Delivery for Iran

### The World’s First Wooden Satellite Arrives at the International Space Station

In a remarkable achievement for space exploration, the first-ever wooden satellite has successfully docked at the International Space Station (ISS). This pioneering satellite, known as **LignoSat**, was transported aboard a SpaceX Cargo Dragon spacecraft during a standard resupply mission. Weighing merely 2 pounds (900 grams), this compact yet significant advancement represents a step forward in the investigation of sustainable materials for space technology.

#### Why Wood?

The concept of utilizing wood in space may initially appear unconventional, given the harsh environments associated with space travel. Nevertheless, wood possesses several compelling attributes that position it as a viable option for future satellite designs. It is lightweight, fairly robust, and, crucially, biodegradable. With the escalating issue of space debris, incorporating biodegradable materials like wood could contribute to alleviating the challenge of space junk, which endangers both satellites and crewed missions.

LignoSat will undergo evaluation in the extreme conditions of space to ascertain how effectively wood can endure the vacuum, radiation, and temperature variances encountered in orbit. If successful, this could pave the way for more environmentally friendly satellite designs moving forward.

#### SpaceX’s Role in the Mission

The wooden satellite was transported to the ISS by SpaceX’s **Cargo Dragon** spacecraft, which successfully docked with the station on Tuesday morning. This operation was part of a larger resupply mission, delivering around 6,000 pounds (2,700 kilograms) of cargo and scientific investigations to the space station. Nonetheless, the LignoSat project stands out as a distinctive and progressive effort focused on examining sustainable materials in space.

Alongside delivering LignoSat, this mission also represented a notable achievement for SpaceX and NASA. For the first time, the Dragon spacecraft will be employed to modify the ISS’s orbit. As early as Friday, NASA and SpaceX plan to perform a “reboost and attitude control demonstration,” wherein the Dragon spacecraft will activate its thrusters to make a slight alteration to the ISS’s orbital path. This represents a critical advancement toward diminishing NASA’s dependence on Russia for space station propulsion, with Russia currently playing a key role in providing the necessary reboosts to sustain the ISS’s orbit.

### Gilmour Space Technologies: Australia’s First Orbital Rocket

In other thrilling space developments, **Gilmour Space Technologies**, an Australian aerospace firm, has received authorization to launch its **Eris** rocket, marking a crucial achievement for Australia’s space sector. The Eris rocket, measuring 82 feet tall (25 meters), is set to become the first entirely Australian launch vehicle to achieve orbit.

Established in 2012, Gilmour Space had initially aimed for a launch earlier this year but faced delays due to regulatory complexities. With the Australian Space Agency’s endorsement now obtained, the company is preparing for a possible launch in December. The Eris rocket has the capability to transport approximately 670 pounds (305 kilograms) of payload into a Sun-synchronous orbit, positioning it as a competitive entity in the small satellite launch arena.

The Eris rocket utilizes hybrid engines that combust a mix of solid fuel and liquid oxidizer, a distinctive propulsion mechanism among orbital-class rockets. This innovative strategy could establish Gilmour Space as a forerunner in the burgeoning small satellite launch industry.

### North Korea’s New Missile Test

On the geopolitical stage, **North Korea** has successfully conducted a test of its most formidable intercontinental ballistic missile (ICBM) to date, the **Hwasong-19**. The missile was launched on October 31, attaining an altitude of nearly 4,800 miles (7,700 kilometers) before descending back to Earth. With a theoretical range of up to 9,320 miles (15,000 kilometers), the Hwasong-19 has the potential to reach targets across the United States.

This missile launch occurs amid increasing cooperation between North Korea and Russia. Reports suggest that North Korea has dispatched approximately 10,000 troops to Russia to assist in its military efforts in Ukraine. In return, it is believed that Russia may be supplying North Korea with advanced technologies for its missile and satellite programs.

### Virgin Galactic’s Search for Funding

Meanwhile, **Virgin Galactic**, the space tourism entity founded by Richard Branson, is endeavoring to secure an additional $300 million in funding. This capital will be allocated to expedite the production of its next-generation **Delta-class spaceplanes** and a new mothership aircraft. Virgin Galactic has encountered financial difficulties in recent years, as its current spaceplane, **VSS Unity**, has struggled to generate profit despite a consistent schedule of suborbital flights.

The company is optimistic that its new Delta-class spaceplanes, designed for enhanced cost-effectiveness and easier maintenance, will facilitate long-term profitability. Virgin Galactic’s CEO, Michael Colglazier, revealed the fundraising initiative during a recent earnings report, stressing the necessity for additional funds to accelerate the development of upcoming vehicles.