TSMC Freezes Shipments To Chinese Chip Designer Sophgo

Taiwan Semiconductor Manufacturing Co. (TSMC) suspended shipments to China-based chip designer Sophgo after a chip it made was found in a Huawei AI processor, according to two sources familiar with the matter, Karen Freifeld and Fanny Potkin reported for Reuters.

Sophgo stated on its website that it complies with all laws and has never engaged in business with Huawei. I Photo: Sophgo X

Sophgo had ordered chips from TSMC that matched the one found on Huawei's Ascend 910B, the sources said. Huawei is restricted from purchasing this technology due to US national security concerns.

Tech research firm TechInsights discovered the TSMC chip on Huawei’s Ascend 910B when it disassembled the multi-chip processor, according to a separate source.

About two weeks ago, after being alerted to the finding, TSMC notified the US, the source added.

Sophgo stated on its website that it complies with all laws and has never engaged in business with Huawei.

The company, which is associated with cryptocurrency mining equipment manufacturer Bitmain, said it had provided a detailed report to TSMC to prove that it had no relation to Huawei.

The US Department of Commerce said it was aware of reports of potential violations of US export controls but could not comment on any ongoing investigation.