Coin World Network Report:
Taiwan Semiconductor Manufacturing Company (TSMC) has informed the US government that someone may be attempting to violate export controls by manufacturing artificial intelligence chips for the Chinese technology group Huawei.
The US Department of Commerce is currently investigating whether TSMC has violated export controls by manufacturing artificial intelligence chips or smartphones for Huawei. It was reported that TSMC alerted the Department of Commerce when a customer ordered chips similar to Huawei’s Ascend 910B. This processor is specifically used for large-scale language model training and may be subject to existing US sanctions.
Before the US sanctions, TSMC produced the 910 version of the 910B chip. TSMC is a contract chip manufacturer and the world’s largest producer of high-end chips.
The US government has imposed extensive export sanctions, restricting Chinese companies from acquiring advanced semiconductors, and Huawei is one of the targets of such measures. These restrictions include prohibiting global chip manufacturers from using US technology or equipment to manufacture chips.
These restrictions not only apply to Huawei but also to other Chinese technology companies, leading to an increase in patent applications for artificial intelligence in China. According to recent reports, such applications have increased by 42% in 2023-24 due to China’s push for technological self-reliance.
TSMC’s compliance and past actions
In an official statement, TSMC assured us that it will comply with all regulations, including export controls. The company stated that it stopped shipping products to Huawei in mid-September 2020.
Although TSMC has communicated with the Department of Commerce regarding recent orders, it is reported that TSMC will not be the subject of the investigation. This situation is considered precautionary to ensure necessary control over the process rather than a violation of the rules.
If the investigation concludes that TSMC has violated sanction regulations, the company may face serious consequences. This could damage its ability to manufacture chips for existing customers, including Apple.
A spokesperson for the Department of Commerce stated that they are aware of reports suggesting a possible violation of export controls, but it is not confirmed whether the department is currently conducting an investigation.
This alert comes as the US Department of Commerce conducts another investigation into whether TSMC complies with export controls. It has been reported that TSMC may have violated sanction regulations by providing smartphones or artificial intelligence chips to Huawei through intermediaries.
