
Chinese server CPU designer Hongjun Microelectronics Technology might lay off up to half of its 300-strong workforce, reports Digitimes because it no longer has access to TSMC’s 7nm node. According to media outlets in China, such as MyDrivers and ICSmart, which cite social media posts, up to 150 employees of the Chinese chip designer could be fired. Digitimes suggests, based on insight from industry insiders, that it might be due to a lack of access to TSMC’s 7nm node.
Last month, TSMC cut off Chinese semiconductor companies involved in high-end processors from its “advanced” nodes, which covers every node ranging from 7nm to the chip manufacturer’s upcoming 2nm process. TSMC launched its 7nm node in 2018, but it’s still relevant in China because domestic fabs like SMIC don’t have the means to mass produce chips fabbed on 7nm or smaller nodes, at least according to the US government.