---
title: "Cut-out: what it means · The AI Compute Race · DRYBURGH"
source: https://dryburgh.com/vol1/glossary/cut-out
description: "Cut-out: A customer ordering chips on another's behalf, as a Chinese company did for Huawei at TSMC. Chapters 5, 7."
---

# Cut-out

What does “Cut-out” mean?

Cut-outA customer ordering chips on another’s behalf, as a Chinese company did for Huawei at TSMC. *Chapters 5, 7.*

From *The AI Compute Race*. [Read the book](https://dryburgh.com/vol1#buy)

## Where the book uses it

- [Chapter 5 — The Island in Every Machine](https://dryburgh.com/vol1/notes/chapter-5)Why every accelerator runs through Taiwan: the foundry, the packaging and the memory that are booked years ahead, and what that does to anyone arriving late with cash.
- [Chapter 7 — The Double Blockade](https://dryburgh.com/vol1/notes/chapter-7)Two governments deciding one trade: Washington’s export rules and Beijing’s instructions at the border, and what each did to the chip business it meant to shape.

## Related terms

- [TSMC](https://dryburgh.com/vol1/glossary/tsmc)
- [EUV](https://dryburgh.com/vol1/glossary/euv)
- [H200](https://dryburgh.com/vol1/glossary/h200)
- [Advanced packaging](https://dryburgh.com/vol1/glossary/advanced-packaging)
- [Affiliates rule](https://dryburgh.com/vol1/glossary/affiliates-rule)
- [AI factory](https://dryburgh.com/vol1/glossary/ai-factory)
- [Booked, allocated, rationed](https://dryburgh.com/vol1/glossary/booked-allocated-rationed)
- [CHIPS Act](https://dryburgh.com/vol1/glossary/chips-act)
- [Convertible](https://dryburgh.com/vol1/glossary/convertible)
- [CoWoS](https://dryburgh.com/vol1/glossary/cowos)
- [Custom silicon](https://dryburgh.com/vol1/glossary/custom-silicon)
- [Double blockade](https://dryburgh.com/vol1/glossary/double-blockade)

From the glossary of The AI Compute Race.

- [Campuses](https://dryburgh.com/vol1/ledger)
- [Tests](https://dryburgh.com/vol1/tests)
- [Scorecard](https://dryburgh.com/vol1/scorecard)
- [Data](https://dryburgh.com/vol1/data/releases)
- [Chapter by chapter](https://dryburgh.com/vol1/companion)
- [The record at a glance](https://dryburgh.com/vol1/observatory)
- [The machine](https://dryburgh.com/vol1/machine)
- [One campus, four futures](https://dryburgh.com/vol1/hyperion)
- [Glossary](https://dryburgh.com/vol1/glossary)
- [People](https://dryburgh.com/vol1/people)
- [Sources](https://dryburgh.com/vol1/sources)
- [Notes](https://dryburgh.com/vol1/notes)
- [Where the book was wrong](https://dryburgh.com/vol1/corrections)
- [Where its sources were wrong](https://dryburgh.com/corrections?book=vol1)
- [The Paper](https://dryburgh.com/vol1/paper)
- [Consent](https://dryburgh.com/vol1/consent)
- [Who builds and pays](https://dryburgh.com/vol1/parties)

*The AI Compute Race: Five Races, One Machine* is a book by Lee S. Dryburgh, the first volume of THE COMPUTE ECONOMY, published by Dryburgh, an imprint of Contestra OÜ, Tallinn, Estonia; its record closes on 8 November 2026.

[About the book](https://dryburgh.com/vol1)[Tell me when it is out](https://dryburgh.com/vol1#notify)