(Credit: Jack Hong/Shutterstock.com)
Apple and Nvidia chip producer Taiwan Semiconductor Manufacturing Corp has stopped chip sales to a suspicious buyer after TSMC chips ended up in Huawei Ascend 910B AI processors, according to an unnamed Taiwanese official.
The 910B is a "multi-chiplet" processor, meaning it contains more than one chip and is designed for handling AI applications.
The buyer whose purchases reportedly ended up in Huawei processors has not yet been named. TSMC has not yet revealed the buyer's name to the Taiwanese government, according to another official.
Roughly two weeks ago, TSMC stopped selling chips to the buyer in question, according to a trade and economic official that spoke with Reuters. TSMC notified the US government that one of its chips had made it into a Huawei product just days after a report indicated the Department of Commerce was investigating TSMC.
The Taiwan-based chip giant reportedly found out its chips were in 910B processors after research firm TechInsights opened one up and identified the TSMC chip.
Last week, TSMC told PCMag in a statement that it is "a law-abiding company and we are committed to complying with all applicable rules and regulations, including applicable export controls. We maintain a robust and comprehensive export system for monitoring and ensuring compliance.
"If we have any reason to believe there are potential issues, we will take prompt action to ensure compliance, including conducting investigations and proactively communicating with relevant parties including customers and regulatory authorities as necessary," TSMC added.
The US has had sweeping export bans in place for any advanced chips to be sent to China or other US-sanctioned countries since late 2022. TSMC has allied itself with the US, and back in April received $6.6 billion in grants and billions more in loans as part of a federally-funded package to expand its chip manufacturing business in Arizona.