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TSMC Raises Concerns to US Over Potential Violation of China AI Chip Restrictions

TSMC has informed the US of Huawei's potential attempt to circumvent export controls on AI chips. Two years ago, the US government restricted exports of high-end AI chips to China. TSMC clarified that it has not supplied chips to Huawei since the middle of September 2020.


TSMC Raises Concerns to US Over Potential Violation of China AI Chip Restrictions
Credit: TSMC

This move follows the US government's restrictions on exporting high-end AI chips to China, which were implemented two years ago to limit the Chinese military's technological advancements.


TSMC clarified its stance by stating, "We are not aware of TSMC being the subject of any investigation at this time," and highlighted that it ceased supplying chips to Huawei since mid-September 2020. Despite this, TSMC's U.S.-listed shares experienced a 1.5% decline following this revelation.


A key aspect of these export controls is the prohibition on global chip manufacturers from using US technology or equipment to produce chips for Huawei or its affiliated products. In recent years, the United States has increased its use of export controls to prevent Chinese companies from acquiring, designing, or manufacturing cutting-edge semiconductors, with Huawei a key target in this effort, reflecting Beijing and Washington's escalating technological rivalry.


According to the Financial Times, TSMC notified the US Commerce Department after receiving orders for a chip resembling Huawei's Ascend 910B, a processor designed for extensive language model training. The Commerce Department and Huawei have yet to respond to Reuters' requests for clarification.

 
  • TSMC has alerted the U.S. about Huawei's potential attempt to circumvent export controls on AI chips.

  • The U.S. government restricted the export of high-end AI chips to China two years ago.

  • TSMC clarified that it has not supplied chips to Huawei since mid-September 2020.


Source: REUTERS

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