TSMC Halts Shipments After Huawei Violation

Taiwan Semiconductor Manufacturing Company (TSMC) has suspended shipments to an undisclosed client after its chips were discovered in Huawei's Ascend 910B AI processor, potentially violating U.S. export controls. The revelation came from a teardown by TechInsights, prompting TSMC to notify U.S. and Taiwanese authorities of a possible attempt by Huawei to circumvent restrictions on advanced technology. TSMC has not supplied Huawei since mid-September 2020, adhering to U.S. sanctions that prohibit selling AI chips to the company. The incident has raised concerns about compliance with international export regulations, leading TSMC to conduct an internal investigation. While the specific client has not been named, TSMC is cooperating with authorities and remains vigilant amid growing geopolitical tensions. The U.S. Department of Commerce has acknowledged reports of potential violations but has not confirmed any investigation.