Chip Controversy: TSMC Halts Shipments Amid Huawei AI Processor Discovery

Taiwan Semiconductor Manufacturing Company (TSMC) has suspended shipments to Chinese chip designer Sophgo after discovering a chip on Huawei's AI processor, the Ascend 910B. While Sophgo claims no affiliation with Huawei, TSMC is conducting an investigation and has notified authorities in both Taiwan and the U.S.

Taiwan Semiconductor Manufacturing Company (TSMC) has suspended shipments to Chinese chip designer Sophgo. This comes after a chip manufactured by TSMC was found in Huawei's AI processor, the Ascend 910B. Both TSMC and U.S. authorities have been alerted, according to sources familiar with the matter.

Responding to the allegations, Sophgo stated on its website that it complies with all laws and has never conducted business with Huawei. Sophgo, affiliated with Bitmain, has submitted a detailed report to confirm its non-involvement. TSMC has declined to comment while Huawei and the U.S. Department of Commerce have yet to respond to enquiries.

In an investigation conducted by TechInsights, TSMC's chip was detected in Huawei's processor. TSMC immediately notified the U.S. and halted shipments to Sophgo. The controversy stems from the enforcement of U.S. export controls, which restrict companies from supplying technology to Huawei.

(With inputs from agencies.)