TSMC suspends shipments to China's Sophgo after Huawei chip discovery: Report

Taiwan Semiconductor Manufacturing Company ( TSMC ) has reportedly suspended shipments to China-based chip designer Sophgo , after a chip it made was found on a Huawei AI processor. Quoting people familiar with the matter, news agency Reuters, Sophgo – affiliated with cryptocurrency mining equipment company Bitmain, had ordered chips from TSMC that matched the one found on Huawei's Ascend 910B . For those unaware, Huawei is restricted from buying the technology to protect US national security .

The report says that tech research firm TechInsights discovered the TSMC chip on Huawei's Ascend 910B when it took apart the multi-chip processor. TSMC alerted the U.S. about the finding roughly two weeks ago.

TSMC has alerted Taiwan and US authorities, and has already started a detailed investigation, the official told the agency. But the official did not name the client, which the latest sources have identified as Sophgo.

TSMC, the world's largest contract chipmaker earlier this week said that it had not supplied Huawei since mid-September 2020, and that it "proactively communicated" with the Commerce Department regarding the matter.

"We are not aware of TSMC being the subject of any investigation at this time," the company said in a statement then.