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Taiwan Semiconductor Manufacturing Company ( TSMC ) may have to pay a fine of $ 1 billion or more to resolve a U.S. exportation dominance investigation associate to a chip it made that was used in a Huawei AI processor , according to a news report byReuters .
It ’s the late development in a situation that first make out to light in late 2024 involving TSMC , Huawei , and Xiamen Sophgo Technologies , a Chinese chip designer . Sophgo isan affiliate of Bitmain , a Bitcoin mining equipment supplier , and TSMC is the world ’s biggest contract bridge chipmaker .
Reportsat the time betoken that a significant quantity of TSMC ’s export - controlled AI chip dieswent into Huawei‘s mass - produced AI accelerator , theAscend 910B AI processor .
In nesting - skirt fashion , it ’s alleged that TSMC ’s splintering is build into Sophgo ’s potato chip , and Sophgo ’s flake is subsequently built into the Ascend 901B.
This is of import not just because of exportation dominion but because Huawei ’s multi - chip processor is considered the most advance in its family to be made in China . It ’s estimated that hundreds of thousands of these processors were produced with these component part .
“ TSMC is a law - abiding company and we are committed to complying with all applicable rule and regulations , including applicable export controls , ” TSMC tell in a statement . “ In conformity with the regulative requirements , TSMC has not supply to Huawei since mid - September 2020 . If we have any reason to believe there are potential issues , we will take prompt action to ascertain compliance , including conduct investigation and proactively communicate with relevant party , including customer and regulatory authorities , as necessary . We proactively communicated with the U.S. Commerce Department regarding the affair in the report and continue to support . ”
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A timeline of TSMC’s chip shipments to Chinese firms
TechInsights , a tech enquiry firm in Ottawa , Canada , take apart Huawei ’s 910B AI C.P.U. and come upon a TSMC - found chipset inside , per Reuters . The chipset resemble one made by Sophgo . Sophgoclaimedthat the U.S. Commerce Department ’s investigating into possible connection between TSMC and Huawei does not necessitate Sophgo or its ware . Sophgo has never had any direct or collateral business dealings with Huawei , it added .
The U.S. Department of Commerceordered TSMC to halt shipmentsof advanced chips to Formosan customers , which included Sophgo .
The U.S. Commerce Departmentconsidered summate Sophgo to the U.S. blacklist .
The U.S. then addedover 20 Formosan companies , including Zhipu AI , which specializes in uprise declamatory nomenclature models , and Sophgo .
