TSMC Bans Export Of Chips To Firm That Supplied Them To Huawei

Taiwan Semiconductor Manufacturing Co. (TSMC) has suspended shipments to a customer after discovering that one of its chips, supplied to the client, ended up in a Huawei product, a Taiwan official familiar with the situation told Yimou Lee and Ben Blanchard of Reuters.

TSMC alerted U.S. officials after tech research firm TechInsights disassembled a Huawei product and identified one of TSMC's chips. I Photo: 曾 成訓 Flickr

Approximately two weeks ago, TSMC halted shipments to the client and launched a detailed investigation, the trade and economic official said, speaking on condition of anonymity due to the sensitivity of the matter.

The company has notified both the U.S. and Taiwanese governments, as it was considered an "important warning event" within TSMC and can be traced back to Oct. 11.

TSMC alerted U.S. officials after tech research firm TechInsights disassembled a Huawei product and identified one of TSMC's chips, Reuters reported, suggesting a potential violation of U.S. export restrictions.

The U.S. imposed limits on the export of advanced artificial intelligence (AI) chips to China two years ago to curb the Chinese military's technological advancements.

Huawei has been a central target of the U.S. government's escalating efforts to use export controls to prevent Chinese companies from acquiring, designing, or manufacturing advanced semiconductors.