TSMC Warns US Officials about Huaweis Artificial Intelligence Chip Orders

Bijie.com reported:
Taiwan Semiconductor Manufacturing Company (TSMC) has notified the US government that someone may be attempting to violate export controls by manufacturing artificial intelligence chips for the Chinese technology group Huawei.
The US Department of Commerce is currently investigating whether TSMC has violated export controls by manufacturing artificial intelligence chips or smartphones for Huawei. It has been reported that recently, when a customer ordered chips similar to Huawei’s Ascend 910B, TSMC alerted the Department of Commerce. This processor is specifically used for large language model training and may be subject to existing US sanctions.
Before the US sanctions, TSMC produced the 910 version of the 910B chip. TSMC is a contract chip manufacturer and the world’s largest high-end chip producer.
The US government has imposed extensive export restrictions, limiting Chinese companies from acquiring advanced semiconductors, with Huawei being one of the targets of such measures. These restrictions include prohibiting global chip manufacturers from using US technology or equipment to manufacture chips.
These restrictions are not limited to Huawei but also include other Chinese technology companies, which has led to an increase in patent applications for artificial intelligence in China. According to recent reports, such applications have increased by 42% in 2023-2024 due to China’s push for technological self-sufficiency.
TSMC’s compliance and past actions
TSMC assures us in an official statement that it will comply with all regulations, including export controls. The company stated that it has stopped shipping products to Huawei since mid-September 2020.
Although TSMC has communicated with the Department of Commerce regarding recent orders, it is reported that TSMC will not be the subject of the investigation. This situation is considered precautionary in order to have necessary control over the process rather than violating the rules.
If the investigation concludes that TSMC has violated the sanction regulations, the company may face serious consequences. This could damage its ability to manufacture chips for existing customers, including Apple.
A spokesperson for the Department of Commerce said that they were aware of reports suggesting a possible violation of export controls but did not confirm whether the department is currently conducting an investigation.
This alert was issued during another investigation by the US Department of Commerce into whether TSMC is complying with export controls. It has been reported that TSMC may have violated sanction regulations by providing smartphones or artificial intelligence chips to Huawei through intermediaries.