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US Commerce Nominee Calls Reported TSMC Shipments to Huawei a ‘Huge Concern’

  • tech360.tv
  • Mar 1
  • 2 min read

U.S. President Donald Trump’s nominee for a key export policy role has raised concerns over reports that Taiwan Semiconductor Manufacturing Co. (TSMC) produced hundreds of thousands of chips that ended up with China’s Huawei.


Building exterior with a gray facade and red "tsmc" logo against a blue sky. The building has modern glass panels.
Credit: TSMC

Jeffrey Kessler, nominated for undersecretary of commerce for industry and security, addressed the issue during his Senate Banking Committee nomination hearing on Thursday. He emphasised the importance of strong enforcement in export controls.


"This is obviously a huge concern," Kessler said. "It's critical to ensure that we have strong enforcement."


If confirmed, Kessler would oversee the Commerce Department’s Bureau of Industry and Security. He stated that the bureau should fully utilise its enforcement and penalty authorities.


The U.S. and China are engaged in a technology war, with artificial intelligence (AI) capabilities at the forefront. The U.S. currently leads in AI development and chip design, but it remains unclear how far behind China is in these areas.


Huawei, a key player in China’s AI ambitions, is on a U.S. trade blacklist that restricts its access to American goods and technology. This includes foreign-made chips produced using U.S. technology, such as those from TSMC.


In October, Canadian tech research firm TechInsights examined Huawei’s 910B AI processor and identified a TSMC chip inside. The 910B is considered the most advanced AI accelerator mass-produced by a Chinese company.


Following this discovery, TSMC halted shipments to China-based chip designer Sophgo, whose chip matched the one found in the Huawei 910B. In November, the U.S. Commerce Department ordered TSMC to stop further shipments of chips to Chinese customers. Around the same time, media reports surfaced about Sophgo ordering hundreds of thousands of chips.


TSMC did not immediately respond to inquiries regarding the hearing. However, a spokesperson stated on Wednesday that the company is "a law-abiding company" and has not supplied Huawei since mid-September 2020.

 

  • U.S. Commerce nominee Jeffrey Kessler called reports of TSMC chips reaching Huawei a "huge concern."

  • Kessler emphasised the need for strong enforcement of export controls.

  • Huawei remains on a U.S. trade blacklist, restricting its access to U.S. technology.


Source: REUTERS

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