Following the investigation launched by the U.S. Commerce Department on whether TSMC has manufactured smartphone or AI chips for Huawei, the foundry giant seems to have identified the underlying issue. According to a report by Reuters, TSMC announced on Tuesday that it has notified Washington about a possible effort by Huawei to bypass U.S. export restrictions.
It is worth noting that TSMC had reportedly informed the U.S. Commerce Department after receiving an order for a chip similar to Huawei’s Ascend 910B, a processor designed for training large language models, Financial Times reveals. How the chip ended up in Huawei’s possession remains unclear.
Before U.S. sanctions were enforced, TSMC had produced an earlier version of the 910B chip, Financial Times notes.
Citing a source close to TSMC, the report by Financial Times suggests that after receiving a questionable order, TSMC engaged in discussions with both the customer involved and the U.S. Commerce Department. The department’s investigation into the matter would be “related to” TSMC, but the company itself would not be the target of any probe.
Another insider cited by the Financial Times’ report shares the same view, indicating that there had been “conversations” between the Commerce Department and TSMC regarding a possible attempt to circumvent export controls. However, there was no implication of any willful violations of compliance on TSMC’s part.
TSMC stated that at this time, the company is not aware of it being under any investigation, noting that it has not provided chips to Huawei since mid-September 2020, Reuters indicates.
Last week, a report by The Information revealed that the U.S. Commerce Department has been examining whether TSMC has been engaged in the production of AI chips designed by Huawei, which have gained popularity among Chinese customers as an alternative to NVIDIA’s chips, as they are barred from purchasing due to U.S. export regulations.
Additionally, the inquiry is said to be exploring whether TSMC manufactured smartphone chips for Huawei’s devices as well.
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(Photo credit: Huawei)