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.
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.
They could ignore sanctions but that would mean they’d be sanctioned as well. Pretty much every manufacturer and financial institution has to obey laws in multiple jurisdictions if they want to operate within those markets.
Would the USA actually sanction TSMC though? Wouldn't that be a massive blow to companies like apple?
You are forgetting that Taiwan has an interest in supporting the U.S. led sanctions.