Janice R. Andrews
Taiwan’s leading chip manufacturer TSMC has suspended deliveries to a customer suspected of diverting semiconductors to Huawei, Bloomberg reports. The action comes amid revelations that TSMC-made chips were discovered in Huawei’s artificial intelligence processors, prompting the Taiwanese firm to alert U.S. authorities about potential sanctions violations.
The supply termination occurred in October 2023 after TSMC discovered evidence linking their products to Huawei devices, violating U.S. trade restrictions imposed in 2020. The company has informed both American and Taiwanese officials and launched an internal investigation.
The situation gained attention when TechInsights’ analysis revealed TSMC components in Huawei’s AI hardware, raising questions about how the Chinese tech company obtained these chips despite trade barriers. While Huawei maintains it hasn’t used TSMC products since the ban, TSMC confirms compliance with the restrictions since September 2020.
This development highlights the ongoing difficulties in monitoring complex semiconductor supply networks and maintaining effective trade sanctions.
