Official announcements from the U.S. Department of Commerce or credible news outlets

TSMC Halts Shipments to Sophgo After Huawei Chip Discovery

Oct 26, 2024, 03:02 PM

Taiwan Semiconductor Manufacturing Company (TSMC) has halted shipments to a client after discovering that its chips were found in Huawei products, potentially violating U.S. sanctions. The U.S. Department of Commerce has initiated an investigation into how TSMC's chips ended up in Huawei devices, as U.S. restrictions prevent TSMC from selling semiconductors to Huawei. The client identified as having its shipments suspended is Sophgo, an AI chip company affiliated with Bitmain, the world's largest Bitcoin mining hardware maker. This move has raised significant concerns among U.S. lawmakers ahead of the election, with suspicions that a Chinese company may have acted as a proxy to place orders for Huawei. The discovery was made by TechInsights in October, and TSMC also stopped making chips for a firm founded by a Chinese crypto mogul.