Third-Party Client Supplies TSMC Chips to Sanctioned Huawei

Taiwanese semiconductor giant TSMC has reportedly discovered that some of its chips ended up in Huawei products despite the Chinese tech company being under US sanctions.

Taiwanese semiconductor giant TSMC has reportedly discovered that some of its chips ended up in Huawei products despite the Chinese tech company being under US sanctions. According to a Bloomberg insider, a third-party client supplied these chipsets to Huawei, using them in its AI servers. It was revealed right after the US Bureau of Industry and Security at the Commerce Department launched an investigation into potential violations of US export controls. TSMC, in response, issued a statement affirming its commitment to abiding by all international regulations, including those governing export controls. The company emphasized its status as a law-abiding entity, underscoring its adherence to all applicable rules. Meanwhile, Huawei maintained that it has not acquired any TSMC-made chips since the US Department of Commerce blocked the company in 2020.

The identity of the third-party client involved remains undisclosed due to the issue’s sensitivity, and it is unclear whether the client acted directly on Huawei’s behalf. What is known, however, is that TSMC chips are indeed powering AI servers used by Huawei to advance its artificial intelligence models. Despite US sanctions, Huawei continues to push forward in chip technology. The company uses 7nm chips from SMIC, China’s largest semiconductor manufacturer. However, US officials doubt SMIC’s ability to produce such chips at scale. Additionally, Huawei had stockpiled certain TSMC-made chipsets before the 2020 blocklist, including the Kirin 910, which has been repurposed and modified for various products. As investigations continue, this incident further highlights the complexities of international trade restrictions and the challenges of enforcing technology sanctions in a globalized supply chain.