TSMC Blocks Huawei's AI Chip Maneuver Amidst Tech Rebound

TSMC reported a potential attempt by Huawei to bypass U.S. export controls preventing them from manufacturing AI chips for the Chinese firm. Informed by a client order resembling Huawei's Ascend 910B chip, TSMC alerted the U.S. Commerce Department. Both the Department and Huawei have yet to comment.

In a move spotlighting the intense technological rivalry between the U.S. and China, Taiwan Semiconductor Manufacturing Company (TSMC) has alerted the United States to a potential attempt by Huawei to sidestep American export controls.

TSMC, which has refrained from supplying Huawei since September 2020, reported the issue after receiving an order for a chip akin to Huawei's Ascend 910B, a processor key to large language model training. The disclosure came to light through Financial Times, citing inside sources.

Despite a 1.5% dip in its U.S.-listed shares following the announcement, TSMC emphasized that they aren't under investigation. Both the U.S. Commerce Department and Huawei have yet to comment on the developments.