TSMC, a leading chip manufacturer, has faced challenges preventing its AI chips from reaching Huawei, a Chinese tech firm on the US blacklist.
The issue came to light after research firm TechInsights found that Huawei’s Ascend 910B AI chip contained parts made by TSMC.
TSMC immediately notified US and Taiwanese authorities and stopped shipping chips to the customer in question.
The company explained that while it plays a critical role in the semiconductor supply chain, it has limited visibility into the end-use of its products.
This lack of oversight makes it difficult for TSMC to guarantee that its chips won’t be resold to restricted parties.
New US Export Controls
The US has introduced stricter export controls this year to prevent advanced AI chips from reaching China.
The government is urging major manufacturers like TSMC and Samsung to enhance their monitoring and surveillance of chip shipments.
As a major player in the industry, TSMC is under pressure to ensure its products don’t end up in the wrong hands.
The company’s experience highlights the complexities of global supply chains and the need for greater oversight.
Source: Bloomberg