Recent reports from Bloomberg reveal that Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, has taken decisive action against a client suspected of illicitly supplying semiconductors to Huawei Technologies. This move follows TSMC’s discovery of its chips being utilized in Huawei’s AI accelerators, despite the ongoing US trade restrictions against the Chinese tech giant.
TSMC reportedly ceased shipments to the unnamed entity in mid-October 2024 after recognizing the presence of its chips in Huawei products. The initial discovery was made by TechInsights, a Canadian research firm, which identified TSMC’s chips within an AI accelerator developed by Huawei. This finding indicates a potential breach of US sanctions imposed on Huawei back in 2019, barring the company from acquiring chips produced by foreign companies using American technology.
The US Commerce Department has progressively tightened these restrictions, including revoking licenses from Intel and Qualcomm to supply chips to Huawei earlier this year. TSMC has consistently maintained that it has not engaged in any business dealings with Huawei since September 2020, in compliance with the US sanctions. Huawei has also stated that it hasn’t utilized TSMC chips since the restrictions came into effect.
This incident underscores the complexities and challenges faced by global chipmakers in navigating geopolitical tensions and trade restrictions. The identity of the third-party intermediary remains undisclosed, and investigations are likely underway to determine the extent of the alleged violation and any potential implications for the parties involved.
(Source: Bloomberg)
