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The US officials have inquired about SMIC’s ability to make 7-nm chips at scale
Taiwan Semiconductor Manufacturing Co. discovered that the chips made for a specific customer ended up with Huawei Technologies Co.
It is a potential violation of US sanctions that restricts the flow of technology to a leading Chinese company.
TSMC Haled Shipments around Mid-October
The company stopped shipments after it realized that the semiconductor made for them was incorporated into Huawei products, according to a person familiar with the matter. The shipment was halted around mid-October.
TSMC informed the US and Taiwanese governments regarding the matter and is investigating into it, the individual mentioned, requesting anonymity due to the sensitive nature of the situation.
The finding by TSMC raises questions regarding the illegal possession of chips. This may be due to China looking to emerge as the leading country in the semiconductor industry
TechInsights, a research organization, has found that Huawei's most recent AI servers feature processors produced by TSMC. TSMC is Nvidia Corp.'s key supplier for manufacturing.
It is still unclear whether the TSMC client was acting on Huawei’s behalf, or where it’s based.
The incident highlights new information on reports that surfaced in the past days, including from The Information.
The report suggests that Washington reached out to TSMC recently about whether the company had produced chips for the blacklisted Chinese company.
US Officials Inquired SMIC’s Ability to Make 7-nm Chips
The US officials have inquired about SMIC’s ability to make 7-nm chips at scale. The use of TSMC chip by Huawei supports this narrative.
The Taiwanese chipmaker has said it stopped all shipments to Huawei after Sept. 15, 2020.
A TSMC representative refused to talk about the incident. A US Commerce Department spokesperson said that the agency’s Bureau of Industry and Security is aware of the potential violations of the law.
The US Commerce Department spokesperson said it on October 22.
Since 2020, Huawei has been on a sanctions list and is restricted from doing business with TSMC and other chipmakers without obtaining a US government license.