TSMC Halts Shipments to Chinese Firm Sophgo After Chip Found in Huawei Processor

TSMC has halted shipments to Chinese chip designer Sophgo after a chip it manufactured was reportedly found in a Huawei AI processor, according to Reuters, which cited two sources familiar with the situation.

According to Reuters, Sophgo had ordered chips from TSMC that were identical to those found in Huawei’s Ascend 910B processor. While Huawei faces strict U.S. export restrictions due to national security concerns, the path by which the chip reached Huawei’s product remains unknown.

Sophgo responded to the situation on Sunday with a statement on its website, firmly denying any business ties with Huawei, whether direct or indirect. The company, which has connections to crypto mining hardware manufacturer Bitmain, emphasized its strict compliance with all relevant laws, including U.S. export controls. To support its position, Sophgo submitted a detailed investigation report to TSMC demonstrating its non-involvement with Huawei.

When contacted by Reuters, TSMC declined to comment on the matter, and Huawei has not yet responded to inquiries. The U.S. Department of Commerce acknowledged it was aware of potential export control violations but would not comment on any ongoing investigations.