aiwan Semiconductor Manufacturing Company (TSMC) may be facing a fine of over $1 billion amid a U.S. export control investigation into chips allegedly used in a Huawei AI processor, according to Reuters.
The controversy stems from claims that TSMC’s AI chip dies—which are subject to U.S. export restrictions—were used in the Ascend 910B processor, China’s most advanced AI accelerator, produced by Huawei. The chips reportedly made their way into Huawei’s hardware through Sophgo Technologies, a Chinese chip designer affiliated with Bitcoin mining company Bitmain.
TSMC, the world’s largest contract chipmaker, has stated it hasn’t supplied Huawei since September 2020 in compliance with U.S. export laws. A spokesperson added the company is in a “quiet period” and refrained from further comment. However, TSMC noted it is cooperating with regulators and “committed to compliance” with all export controls.
This investigation marks a significant escalation in U.S. efforts to curb China’s access to high-end semiconductor technology, particularly in the AI and defense sectors. The situation remains developing.
