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TSMC suspended shipments to China firm after chip found on Huawei processor, sources say (www.reuters.com)

submitted 1 month ago by [email protected] to c/technology

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Taiwan Semiconductor Manufacturing Company suspended shipments to China-based chip designer Sophgo after a chip it made was found on a Huawei AI processor, according to two people familiar with the matter.

Sophgo had ordered chips from TSMC that matched the one found on Huawei's Ascend 910B, the people said. Huawei is restricted from buying the technology to protect U.S. national security. Reuters could not determine how the chip ended up on the Huawei product.

Tech research firm TechInsights discovered the TSMC chip on Huawei's Ascend 910B when it took apart the multi-chip processor, a different source told Reuters on Tuesday. Alerted to the finding, about two weeks ago TSMC notified the U.S., the source said.

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[–] [email protected] 17 points 1 month ago (24 children)

How do US restrictions factor in here? TSMC is a Taiwanese company with only one operational plant in the US, the majority are in Taiwan, China, and Japan.

[–] realitista 15 points 1 month ago (6 children)

There is likely a lot of US tech in that chip. TSMC is just a fab, they don't have a lot of their own technology, they buy thousands of pieces of tech from all over the world to make their chips. A lot of that comes from the US.

[–] [email protected] 5 points 1 month ago (5 children)

Yes, but it would be an even bigger blow to TSMC if all US companies would stop buying from them. I'm pretty sure nvidia, AMD and Apple make a very sizable part of their customer base.

[–] realitista 2 points 1 month ago* (last edited 1 month ago)

I'm sure TSMC would become untenable if either the US stopped buying or selling to them, though I tend to disagree and think that not licensing US tech would kill them faster. I'm pretty sure that much of that tech is not available from anywhere else and would just cause a full stop of their business, at least for some time. It's easier to survive on lower revenue than it is on a fully shuttered assembly line.

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