On October 24, 2024, it was reported that a device produced by the Chinese company Huawei was found to contain chips manufactured by TSMC (Taiwan Semiconductor Manufacturing Company), which are subject to US export controls. This discovery has raised concerns and prompted the US House of Representatives to seek responses from the US Department of Commerce and TSMC.
John Moolenaar, the Chairman of the China Commission, expressed worries about the potential national security implications of TSMC chips powering Huawei’s artificial intelligence accelerator, which could pose a significant evasion of US export controls. He emphasized the need for immediate responses from the Department of Commerce’s Bureau of Industry and Security (BIS) and TSMC to address the scope and scale of this issue.
TechInsights, a technology research firm, previously reported that Huawei products were found to include a chip manufactured by TSMC. Huawei has been on the US export control list since 2019, and if TSMC is confirmed to have exported chips to Huawei, it could violate US export restrictions. In response, TSMC stated that it ceased shipments in mid-September 2020 and proactively issued warnings to the US Department of Commerce.
It was revealed that the Huawei Ascend 910B processor was one of the products found to be using TSMC chips. The Ascend 910B is considered Huawei’s most advanced AI chip. Meanwhile, a Taiwanese official disclosed that TSMC suspended shipments to a customer for using TSMC chips that eventually ended up in Huawei products.
Due to sensitivity surrounding the issue, the official preferred to remain anonymous. The official stated that TSMC has notified the US and Taiwan governments about the internal “critical alert event” dating back to October 11. However, the official did not disclose the identity of the customer cut off by TSMC. TSMC declined to comment on the matter to Reuters.
Amid ongoing military and economic threats from China, the Taiwanese government remains vigilant and has implemented its own export control measures to prevent advanced chips from being produced in China. Taiwanese officials emphasized their commitment to complying with US regulations. When responding to the TSMC chip incident, Taiwan’s Minister of Economic Affairs, Kuo Chih-hui, called on businesses to adhere to regulations and engage in open communication with authorities.
Reports have indicated that Chinese entities have been attempting to circumvent US sanctions by using services provided by companies like Amazon to access advanced US chips and AI technology. The situation underscores the complexities and challenges of regulating the global technology supply chain amidst escalating geopolitical tensions.