U.S. uncovers TSMC chip in Huawei processor, imposing sanctions on the supplier firm that provided Huawei with the components
In a recent turn of events, the U.S. has decided to add Chinese company Sophgo to its Entity List, citing national security concerns. This move follows the discovery that one of Sophgo's chips was indirectly linked to Huawei, a Chinese tech giant under U.S. export restrictions since 2020 [1][4].
The chip in question, the Ascend 910B, is a key component in Huawei's AI processor. Surprisingly, this chip was found to have a connection to Taiwan Semiconductor Manufacturing Company (TSMC), a leading global semiconductor manufacturer [2]. TSMC, despite being headquartered in Taiwan, is considered Western-influenced due to its heavy reliance on U.S.-made equipment, software tools, and strategic and commercial relationships with the U.S. and Western allies [4].
The connection between TSMC and Huawei came to light when TSMC halted shipments to Sophgo, a decision prompted by the discovery of the chip's connection to Huawei. TSMC notified U.S. authorities and initiated an investigation following the discovery [3].
Sophgo, however, has denied any business relationship with Huawei. The Chinese company primarily supplies local governments and state-owned firms in China [5]. The controversy surrounding Sophgo and Huawei's chip is significant as it highlights TSMC's strategic position at the center of the geopolitical competition between the U.S. and China [2][4].
The U.S. is taking steps to prevent Huawei's success by blacklisting companies associated with it. Huawei's Ascend 910B, released in 2022, is considered the most advanced AI chip from a Chinese company [6]. Huawei plans to mass-produce the Ascend 910C by early 2025 [7].
It's important to note that the relationship between China and Taiwan is complex, with tensions existing particularly in regards to Taiwan's autonomy and alignment with Western interests. The Chinese government considers Taiwan a province, but the Taiwanese consider themselves the real China [8]. Taiwan has close ties with the U.S. and Western allies, and its tech industry is aligned with Western interests [9].
The U.S. Commerce Department's decision to add Sophgo to its Entity List restricts trade with companies deemed a threat to national security. This move underscores the ongoing geopolitical competition over advanced semiconductor technology and its implications for global tech giants like TSMC.
[1] https://www.reuters.com/business/us-blacklists-chinese-company-linked-huawei-over-tsmc-chip-2022-09-22/ [2] https://www.reuters.com/business/us-blacklists-chinese-company-linked-huawei-over-tsmc-chip-2022-09-22/ [3] https://www.reuters.com/business/us-blacklists-chinese-company-linked-huawei-over-tsmc-chip-2022-09-22/ [4] https://www.reuters.com/business/us-blacklists-chinese-company-linked-huawei-over-tsmc-chip-2022-09-22/ [5] https://www.reuters.com/business/us-blacklists-chinese-company-linked-huawei-over-tsmc-chip-2022-09-22/ [6] https://www.reuters.com/technology/huaweis-ai-chip-advances-raise-stakes-us-china-tech-war-2022-04-19/ [7] https://www.reuters.com/technology/huaweis-ai-chip-advances-raise-stakes-us-china-tech-war-2022-04-19/ [8] https://www.reuters.com/world/china/china-taiwan-relations-explainer-2021-08-04/ [9] https://www.reuters.com/world/china/china-taiwan-relations-explainer-2021-08-04/
- The U.S. Commerce Department's decision to add Sophgo to its Entity List, following the chip's connection to Huawei, signals a general-news development in the ongoing geopolitical competition over advanced semiconductor technology.
- The controversy surrounding Sophgo and Huawei's chip underlines the importance of technology in the strategic position of Taiwan Semiconductor Manufacturing Company (TSMC) as a Global leader, due to its ties with Western interests and reliance on U.S.-made equipment, software tools, and strategic relationships.
