TSMC is warning US authorities about a possible violation of export rules by Huawei, for the production of its AI chips.
TSMC, the world’s largest semiconductor producer, has tipped off U.S. authorities about a possible violation of export restrictions by Huawei. It did so after a customer placed an order for a chip similar to Huawei’s Ascend 910B. That AI processor is specifically designed for large language models, writes The Register.
What did Huawei do wrong?
TSMC suspected that Huawei was trying to circumvent export regulations through an intermediary. These US restrictions prohibit the export of advanced AI chips to China. These were introduced for fear that the technology would be used for military purposes. The US Department of Commerce has since launched an investigation into possible supplies of AI chips to Huawei, which would be a violation of export laws.
TSMC stressed that since September 2020, the company has been in strict compliance and has stopped supplying chips to China. Several years ago, the U.S. restricted exports to China of advanced chips with American technology, fearing the technology would be used for military purposes. TSMC creates 90 percent of these chips, and thus sounded the alarm after the order. The U.S. government remains concerned about the possibility that Huawei’s devices Beijing could be used for espionage.
Japan also faced restrictions imposed by the United States on exporting chips to China. Those restrictions sharply reduce the company’s profits, even though Huawei is China’s leading technology company.
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