Discovery of TSMC Technology in Huawei’s AI Chips

In a significant development within the semiconductor industry, recent analyses have revealed that Huawei’s Ascend 910B AI processors incorporate technology from Taiwan Semiconductor Manufacturing Company (TSMC). This discovery has raised concerns about the potential circumvention of U.S. export controls and the complexities of global supply chains.

Huawei, a leading Chinese technology firm, has faced stringent U.S. sanctions since 2019, restricting its access to advanced semiconductor technologies due to national security concerns. TSMC, the world’s largest contract chipmaker, ceased supplying chips to Huawei in mid-September 2020 to comply with these regulations.

In October 2024, TechInsights, a Canadian semiconductor research firm, conducted a teardown of Huawei’s Ascend 910B AI processor. Despite the export restrictions, their analysis identified components manufactured by TSMC within the chip.

Upon learning of the findings, TSMC promptly notified the U.S. Department of Commerce and initiated an internal investigation. The company reiterated its commitment to compliance, stating it had not supplied chips to Huawei since the sanctions were imposed. TSMC is exploring the possibility that its technology reached Huawei through third parties or from pre-sanction stockpiles.

The incident highlights potential vulnerabilities in the semiconductor supply chain. Reports suggest that Chinese chip designer Sophgo may have acted as an intermediary, procuring TSMC chips that eventually ended up in Huawei’s products. TSMC has since suspended shipments to Sophgo and is collaborating with authorities to address the issue.

This situation underscores the challenges in enforcing export controls and the need for robust monitoring mechanisms. It also raises questions about the effectiveness of current regulations in preventing the transfer of sensitive technologies to restricted entities.

The discovery of TSMC technology in Huawei’s AI chips is a critical reminder of the complexities inherent in global supply chains and the importance of vigilant compliance with export controls. As investigations continue, the semiconductor industry may see increased scrutiny and potential policy adjustments to address these challenges.

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