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Is the American warning shot already bearing fruit? According to Bloomberg, Taiwan Semiconductor Manufacturing Co. (TSMC) reportedly halted semiconductor shipments to a customer suspected of illegally sending chips to Huawei. The move follows reports that TSMC informed the US government that its chips were being used in one of Huawei’s artificial intelligence accelerators, which could contravene the US trade embargo targeting the Chinese tech giant. Although the identity of this customer as well as the question of whether the latter acted on behalf of Huawei remains unclear, TSMC has chosen to inform the American and Taiwanese authorities and is continuing its investigation for its part.
Since the imposition of these sanctions, and despite the discovery of its chips in Huawei servers, TSMC has denied any relationship with the Chinese manufacturer, declaring that it has stopped producing processors for Huawei since September 2020. Huawei has also for its part, claimed not to have used TSMC chips since the sanctions were put in place. Huawei officially buys chips from the Chinese company Semiconductor Manufacturing International Corp. (SMIC), although U.S. officials have expressed serious doubts about SMIC’s ability to produce enough high-tech processors to meet market demand.
