Taiwan’s TSMC halts shipments to Sophgo over Huawei chip link

Taiwan Semiconductor Manufacturing Company (TSMC) has suspended shipments to Chinese chip designer Sophgo after a TSMC-made chip was discovered in a Huawei artificial intelligence (AI) processor, sources familiar with the matter said.

Sophgo reportedly ordered chips from TSMC that matched the one found on Huawei’s Ascend 910B processor. However, Huawei is restricted from purchasing such technology due to US national security concerns.

Sophgo, which is affiliated with cryptocurrency mining equipment company Bitmain, maintains it has never conducted any business with Huawei and has provided a detailed investigation report to TSMC to prove its innocence.

Tech research firm TechInsights found the TSMC chip in Huawei’s Ascend 910B during a teardown of the multi-chip processor, a source told Reuters on Tuesday. TSMC then informed the US about the discovery approximately two weeks ago.

Around the same time, TSMC stopped shipments to a customer after discovering that a chip it supplied to them was used in a Huawei product, as reported by Reuters on Wednesday. This suspension was confirmed by a Taiwan official.

Huawei, based in Shenzhen, confirmed on Tuesday that it has not manufactured any chips through TSMC since the US implemented new export regulations in 2020. The US extended its control to block the delivery of foreign-made products to Huawei that contain US technology, such as TSMC’s chips.

Earlier this year, TSMC provided chips for Huawei’s Ascend series. The Ascend 910B, launched in 2022, is considered the most advanced AI chip from a Chinese company.

In August, the Research Institute for Democracy, Society, and Emergency Technology (DSET) in Taiwan reported that Bitmain, a prominent Chinese integrated circuit design firm and supplier of cryptocurrency mining machines, is looking to compete with Nvidia and AMD in the AI chip market.

Attribution: Reuters

Subediting: M. S. Salama