Chip Confusion: TSMC Halts Shipments Amid Huawei-Led Controversy

TSMC halted shipments to Sophgo after discovering its chips on a Huawei AI processor, potentially violating U.S. export controls. Sophgo, linked to Bitmain, denied connections to Huawei, providing a report to TSMC. Both U.S. and Taiwan authorities were alerted as investigations continue amid a complex tech landscape.

In a significant development, Taiwan Semiconductor Manufacturing Company (TSMC) has suspended shipments to Chinese chip designer Sophgo following the discovery of its chips on a Huawei AI processor. This move is linked to potential breaches of U.S. export controls.

According to industry insiders, the chip in question matched one found on Huawei's Ascend 910B processor, which is restricted due to U.S. national security concerns. Despite Sophgo's assertions of compliance and lack of ties with Huawei, TSMC initiated investigations and briefed Taiwan and U.S authorities.

As the tech sector closely watches, questions loom over supply chain compliance and geopolitical tensions. The U.S. Department of Commerce acknowledged the situation but withheld comments on ongoing investigations, keeping the tech industry on high alert.

(With inputs from agencies.)