Taiwan Semiconductor Manufacturing Company (TSMC) informed U.S. authorities that one of its chips was discovered in a Huawei product, following an analysis conducted by the tech research firm TechInsights, according to a source familiar with the situation. This finding raises concerns about a potential breach of export restrictions imposed on the Chinese company.
The product in question is Huawei's Ascend 910B, which is recognized as the most advanced AI chip produced by a Chinese firm, as noted by another source. While the first source did not disclose the specific chip, it indicated that the TSMC component was part of a multi-chip system.
TechInsights notified TSMC about the chip's presence prior to releasing its report, prompting TSMC to alert the U.S. Commerce Department a few weeks ago.
This incident highlights the challenges of enforcing export controls for both manufacturers of highly sought-after products and regulatory bodies. It also underscores Huawei's ongoing demand for cutting-edge chips.
In a statement released on Monday, TSMC confirmed that it had proactively contacted the Commerce Department regarding this issue and emphasized that it has not supplied chips to Huawei since mid-September 2020.
"We are not aware of TSMC being the subject of any investigation at this time," the company stated.
Huawei was added to a U.S. trade-restriction list in 2019 due to national security concerns.
TechInsights, which has yet to publish its report, declined to provide any comments.
Huawei, based in Shenzhen, stated that it has not manufactured any chips through TSMC since the U.S. regulations were enacted in 2020.
The origin of the chip's transfer to Huawei remains uncertain. In 2019, Huawei launched its Ascend 910 chip series, which, prior to the implementation of export controls, was manufactured by TSMC, according to two sources who spoke to Reuters earlier this year.
Reports from The Information and the Financial Times indicate that the U.S. government is investigating TSMC and Huawei.
The Commerce Department acknowledged in a statement that it is "aware of reporting alleging potential violations of U.S. export controls," but refrained from commenting on the status of any ongoing investigation.
Additionally, a third source verified that TechInsights conducted a teardown of a Huawei device and identified what appears to be a chip produced by TSMC.
In its statement, TSMC emphasized, "We maintain a robust and comprehensive export system for monitoring and ensuring compliance."
Taiwan's government, which enforces strict regulations to prevent the production of advanced chips in China, has consistently affirmed its commitment to ensuring that Taiwanese technology firms adhere to U.S. regulations.
"We will have full communication with the company," stated Taiwan's Economy Minister Kuo Jyh-huei during a press briefing in Taipei on Wednesday, though he did not provide further details.