Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, has suspended shipments to an unnamed customer after discovering one of its chips in a Huawei product, according to a source familiar with the situation.
The move comes as TSMC navigates the complex landscape of US export restrictions on advanced chips to China. These restrictions specifically prohibit TSMC from producing AI chips for Huawei, a Chinese technology giant.
The discovery was made about two weeks ago, prompting TSMC to launch a detailed investigation into the matter. The company has also notified both US and Taiwanese authorities about the incident, which is being treated as an "important warning event" within TSMC.
This development follows a recent report by tech research firm TechInsights, which identified a TSMC-made chip in Huawei's Ascend 910B, considered the most advanced AI chip available from a Chinese company. The chip in question was reportedly part of a multi-chip system.
TSMC had previously informed the US Commerce Department about a potential attempt by Huawei to circumvent export controls. The company's swift action in halting shipments and initiating an investigation underscores the seriousness with which it is treating the situation.
As of now, TSMC has not disclosed the identity of the customer to whom shipments have been suspended. The company has declined to comment on the matter, while Taiwanese officials have confirmed the broad details of the incident without revealing specific client information.
This event highlights the ongoing challenges faced by global semiconductor companies in navigating geopolitical tensions and trade restrictions between the US and China. As the situation unfolds, it remains to be seen how this will impact TSMC's operations and its relationships with customers and regulatory bodies.