Huawei's new AI chips included tech made by TSMC

Taiwan Semiconductor Manufacturing Company (TSMC) in San Jose, California on February 18, 2017. - Photo: TRIPPLAAR KRISTOFFER/SIPA (AP)
Taiwan Semiconductor Manufacturing Company (TSMC) in San Jose, California on February 18, 2017. - Photo: TRIPPLAAR KRISTOFFER/SIPA (AP)

An advanced chip manufactured by Taiwan Semiconductor Manufacturing Company was reportedly found in sanctioned Chinese tech giant Huawei’s latest artificial intelligence chips.

Research firm TechInsights took apart Huawei’s cutting-edge AI accelerator and found an Ascend 910B chip made by TSMC (TSM), Reuters and Bloomberg reported, citing unnamed people familiar with the matter.

The Canadian research firm told TSMC about its findings, prompting the Taiwanese chipmaker to inform the U.S. government about Huawei’s possible violation of U.S. export controls, Reuters reported.

The Chinese tech company said it hasn’t “produced any chips via TSMC after the implementation of the amendments made by the US Department of Commerce to its FDPR that target Huawei in 2020,” in a statement shared with Bloomberg. The rule does not allow the export of any good to any country if it is manufactured with a certain percentage of U.S. intellectual property components.

Huawei added that it “has never launched the 910B chip.”

TSMC also informed the U.S. government about a potential attempt by Huawei to have it make AI chips for the company, the Financial Times reported.

The Taiwanese chipmaker said in a statement shared with Quartz that it “proactively communicated with the U.S. commerce department regarding” a report by The Information last week that it was under investigation for making AI or smartphone chips for Huawei, which would be a violation of U.S. export controls.

“We are not aware of TSMC being the subject of any investigation at this time,” TSMC said in the statement, adding that it “is a law-abiding company and we are committed to complying with all applicable rules and regulations, including applicable export controls.”

The chipmaker said it has not supplied chips to Huawei “since mid-September 2020.”

“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,” TSMC said in the statement.

Neither Huawei nor the Department of Commerce responded to a request for comment from Quartz.

TSMC informed the Commerce Department about a customer placing orders for a chip resembling the Ascend 910B processor developed by Huawei, the Financial Times reported, citing unnamed people familiar with the matter. After seeing the order, a person close to TSMC told the Financial Times that the company also spoke to the customer related to the order, and that any investigation would be “related to” the Taiwanese chipmaker, but that it wouldn’t be the focus.

The chipmaker reportedly made the precursor to Huawei’s chip before U.S. sanctions were placed on the Chinese tech company.

A Commerce Department spokesperson told the Financial Times that its Bureau of Industry and Security is aware of The Information’s report, and that it “cannot comment on whether any investigation is ongoing.”

Officials from the BIS met with TSMC leaders earlier this month about issues with its supply chain, Bloomberg reported, including over if third-party distributors could allow China access to restricted technology.

TSMC’s U.S.-listed shares were down around 1.5% during mid-day trading on Tuesday.

This story has been updated with additional information and a statement from TSMC.

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