Taiwan’s TSMC, a leader in semiconductor manufacturing, has halted shipments to one of its clients after finding its chip in a processor by the Chinese company Huawei, which is under strict U.S. sanctions.
Chinese company Sophgo, affiliated with cryptocurrency mining equipment maker Bitmain, had ordered TSMC chips identical to those used in Huawei’s AI processors. However, Sophgo insists it has no affiliation with Huawei and has provided TSMC with all necessary proof.
Despite these assurances, TSMC decided to suspend shipments. This decision came after experts found a TSMC chip in a Huawei processor, and TSMC promptly reported the discovery to U.S. authorities, who suspect a potential breach of export control regulations.
The situation between Huawei and TSMC intensified after the U.S. imposed strict sanctions on the Chinese company, concerned that Huawei’s technology could be used for espionage. In response, TSMC was forced to cease supplying its products to Huawei.
