Chip giant halts shipments to Chinese firm

Taiwan Semiconductor Manufacturing Company suspended shipments to China-based chip designer Sophgo after its chip was found in a Huawei AI processor, according to two people familiar with the matter.

Sophgo had ordered chips from TSMC that matched the one found in Huawei's Ascend 910B.

Huawei is restricted from buying the technology to protect US national security..

Sophgo said in a statement on its website yesterday that it was in compliance with all laws and had never engaged in any business relationship with Huawei. Sophgo, which is affiliated with cryptocurrency mining equipment company Bitmain, said it had provided a detailed investigation report to TSMC to prove it was not related to Huawei.

The US Department of Commerce said it was aware of reports of potential violations of US export controls but it could not comment on whether any investigation was ongoing.

Tech research firm TechInsights discovered the TSMC chip in Huawei's Ascend 910B when it took apart the multi-chip processor, a different source told Reuters. Alerted to the discovery, TSMC notified the US about two weeks ago, the source said.

TSMC, the world's largest contract chipmaker, earlier said it had not supplied Huawei since mid-September 2020 and that it "proactively communicated" with the Commerce Department regarding the matter.

Reuters