Taiwan Semiconductor Manufacturing Company (TSMC) recently informed US authorities that a chip manufactured by the company was discovered in a Huawei product, following a teardown conducted by TechInsights, a technology research firm.
This finding raises concerns about potential violations of US export restrictions on Huawei.
The chip in question was identified in Huawei’s Ascend 910B, regarded as one of the most advanced AI chips produced by a Chinese company. A source familiar with the matter indicated that the TSMC chip was part of a multi-chip system. TechInsights alerted TSMC about the discovery before publishing its findings, prompting TSMC to notify the US Commerce Department a couple of weeks ago.
This situation highlights the challenges of enforcing export controls, particularly regarding high-demand products and regulatory oversight. TSMC confirmed in a statement that it proactively contacted the Commerce Department regarding the issue and emphasized that it has not supplied chips to Huawei since mid-September 2020. The company also stated that it is not currently under investigation.
Huawei has been on a US trade restriction list since 2019 due to national security concerns. The US sanctions prevent the company from engaging in business with TSMC and other contract chip manufacturers without government approval. In its statement, Huawei reiterated that it has not produced any chips through TSMC since the implementation of US rules in 2020 and claimed that it has never launched the 910B chip.
The means by which the TSMC chip ended up in Huawei’s product remains unclear. Reports suggest that prior to the imposition of export controls, TSMC produced Huawei’s Ascend 910 chip series in 2019. TechInsights has not yet commented on its report, while the US Commerce Department stated it is aware of potential violations of export controls but cannot confirm the existence of an ongoing investigation.
TSMC also informed US authorities about a customer attempting to place orders for a chip similar to the Ascend 910B, raising further questions about compliance with export regulations. The company reiterated its commitment to abide by all relevant laws and regulations, asserting that it has taken steps to ensure compliance, including investigations and communication with regulatory bodies.
In light of these developments, Taiwan’s government has expressed its commitment to ensuring that Taiwanese tech companies adhere to US regulations. Taiwan’s Economy Minister Kuo Jyh-huei confirmed the government’s intention to maintain communication with TSMC regarding compliance matters.
