Taiwan Semiconductor Manufacturing Co. (TSMC) recently halted semiconductor shipments to a client suspected of illegally passing the chips to Huawei, according to Bloomberg. This action came after the company notified the US government that its chips were found in one of Huawei’s AI accelerators, though the identity of the third-party involved remains unclear.
It is said that TSMC stopped shipping to the entity in mid-October after recognising that the chips were being used in Huawei products. The incident came to light when Canadian research firm TechInsights identified the company’s chips used in an AI accelerator developed by the Chinese tech giant, a breach of US trade restrictions imposed on it.
As you may recall, the US Commerce Department introduced sanctions preventing Huawei from acquiring chips made by foreign companies back in 2019. These restrictions were further tightened earlier this year when Intel and Qualcomm licenses to supply chips to Huawei were revoked.
TSMC has denied any business relationship with Huawei since September 2020, complying with US sanctions. Similarly, Huawei stated that it has not used TSMC chips since the restrictions were enacted.
(Source: Bloomberg)
