Taiwan Semiconductor Manufacturing Company (TSMC) has halted chip shipments to China-based chip designer Sophgo after discovering that one of its chips was found on Huawei’s Ascend 910B AI processor, according to sources familiar with the matter. This development comes amid US restrictions on Huawei’s access to advanced technologies, which are intended to safeguard US national security interests.
TSMC’s decision to suspend shipments to Sophgo was reportedly made after the tech research firm TechInsights identified a TSMC-produced chip within the multi-chip configuration of Huawei’s Ascend 910B. The discovery prompted TSMC to notify both Taiwan and US authorities and initiate an investigation into the supply chain.
Sophgo, which has ties to cryptocurrency mining equipment company Bitmain, confirmed in a statement that it complies with all legal requirements and stated that it has no business relationship with Huawei. The company claims it provided a detailed report to TSMC to clarify its lack of association with Huawei in this instance. Huawei, for its part, has stated that it ceased sourcing chips from TSMC after US restrictions were imposed on it in 2020, while TSMC stated that it had not supplied Huawei since mid-September 2020.
The US Department of Commerce noted that it was aware of reports related to potential violations of US export controls but did not confirm if an investigation is ongoing. TSMC, the world’s largest contract chipmaker, has maintained close communication with the Commerce Department on the matter.
In August, the Research Institute for Democracy, Society and Emerging Technology (DSET) in Taiwan reported that Bitmain and its affiliate Sophgo are positioning to compete in the AI chip market, challenging industry leaders Nvidia and AMD. Sophgo, founded by Bitmain co-founder Micree Zhan, operates R&D centers across more than 10 cities in China and internationally. In 2021, Bitmain affiliates faced legal issues in Taiwan over alleged illegal recruitment and R&D activities involving Taiwanese semiconductor engineers.
