Amidst U.S.-China tech tensions, TSMC suspends chip deliveries to Sophgo due to the discovery of its chips in Huawei's advanced AI processor, sparking investigations into potential export control breaches.
 |
| TSMC halts chip shipments to Chinese firm Sophgo after a TSMC-made chip is found in a Huawei AI processor, raising concerns about potential export control violations. Image Courtesy: TSMC |
Taipei, Taiwan – October 27, 2024:
Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, has halted shipments to China-based chip designer Sophgo following the discovery of a TSMC-made chip in a Huawei AI processor. This move comes amid heightened tensions between the U.S. and China, with strict export controls in place to limit Huawei's access to advanced technology.
According to multiple sources, Sophgo had ordered chips from TSMC that matched the specific chip found in Huawei's Ascend 910B AI processor. While Sophgo has denied any direct business relationship with Huawei, the incident has raised concerns about potential circumvention of U.S. export controls.
TSMC has taken proactive steps to address the issue, notifying both U.S. and Taiwanese authorities. The company has emphasized its commitment to complying with all relevant regulations and has assured that it has not supplied chips to Huawei since mid-2020.
Huawei, for its part, has denied any involvement in the production of chips through TSMC after the imposition of U.S. export restrictions in 2020. The company has maintained that it adheres to all applicable laws and regulations.
The incident highlights the complex geopolitical landscape surrounding semiconductor technology and the challenges faced by companies in navigating the intricate web of export controls. As the global semiconductor industry continues to evolve, it remains to be seen how this case will impact future supply chain dynamics and regulatory oversight.