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TSMC Flags Potential Huawei AI Chip Workaround to U.S. Authorities

TSMC Flags Potential Huawei AI Chip Workaround to U.S. Authorities

TSMC Alerts U.S. to Potential Huawei Export Control Bypass

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, has notified the United States government about a possible attempt by Huawei Technologies to circumvent U.S. export controls. This development comes amid ongoing efforts by the U.S. to restrict the export of high-end AI chips to China, aiming to limit the Chinese military’s technological capabilities.

TSMC has clarified that it is not currently under investigation and has not supplied chips to Huawei since mid-September 2020, in compliance with U.S. regulations. However, the company’s U.S.-listed shares experienced a 1.5% decline following the announcement.

The U.S. export controls prohibit global chip manufacturers from utilizing American technology or equipment to produce chips for Huawei. These measures are part of a broader strategy to prevent Chinese companies from accessing advanced semiconductor technology, with Huawei being a primary focus of these efforts.

According to a report by the Financial Times, citing sources familiar with the situation, TSMC informed the U.S. Commerce Department about a customer order for a chip similar to Huawei’s Ascend 910B, a processor used for training large language models. This notification highlights the ongoing challenges and tensions in the semiconductor industry, particularly in the context of the U.S.-China tech rivalry.

The U.S. Commerce Department and Huawei have not immediately responded to requests for comments from Reuters regarding this matter.

As the situation continues to unfold, it underscores the complex regulatory landscape in the global semiconductor industry and the ongoing efforts to balance technological advancement with national security concerns.

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