Taiwan Semiconductor Manufacturing Co. (TSMC) has halted shipments to a client after discovering that the chips it produced were found in products by Huawei Technologies Co., raising concerns about potential violations of US sanctions. The incident was reported by Bloomberg, which highlighted that Huawei has been restricted from sourcing chips from TSMC without a US license since 2020.
Despite these restrictions, recent findings suggest that TSMC-manufactured chips appeared in Huawei devices, complicating the company’s earlier claims of compliance. TSMC emphasized its commitment to adhering to export controls and is engaging with US authorities over the matter. Meanwhile, Huawei reiterated that it has not directly sourced chips from TSMC since the sanctions took effect.
The situation has attracted the attention of US lawmakers, with Representative John Moolenaar calling for urgent clarity from TSMC and the Bureau of Industry and Security (BIS). Taiwan’s Minister of Economic Affairs, J.W. Kuo, assured that the nation respects US export measures and will address this issue with TSMC.
The incident has prompted a detailed investigation by TSMC, as it seeks to identify how these chips ended up in Huawei products, especially amid growing demand for AI technology, where compliance with export regulations remains critical.