TSMC reports potential AI chip export curb violation to US officials

Taiwan Semiconductor Manufacturing Company (TSMC) has revealed it proactively alerted US authorities about a suspicious order that may have been an attempt to circumvent export controls on AI chips for Chinese tech giant Huawei.

The world’s largest contract chipmaker disclosed that it recently notified the US Department of Commerce after receiving an order for a processor that bore similarities to Huawei’s Ascend 910B, a chip designed for training large language models. 

TSMC had previously manufactured the chip’s predecessor before US sanctions took effect.

“We proactively communicated with the US commerce department regarding the matter,” TSMC stated, as quoted by Financial Times.

The company noted it has not supplied chips to Huawei since September 2020, when restrictions were implemented.

The situation highlights the ongoing technological tensions between the US and China. US export controls prohibit chip manufacturers worldwide from using American technology or equipment to produce semiconductors for Huawei.

Given that virtually all semiconductor fabrication facilities rely on some US-made tools, these restrictions effectively bar Huawei from accessing TSMC’s advanced chip-making capabilities.

While recent reports suggested the Commerce Department was investigating TSMC for potential violations, the company clarified it is not currently the subject of any investigation. Sources familiar with the matter indicated that TSMC’s communication with authorities came after internal compliance checks raised concerns about the suspicious order.

TSMC, which controls over 90% of the market for advanced chips, said it maintains a “robust and comprehensive export system” to ensure compliance with international regulations.

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