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Exclusive-TSMC told us about a chip in a Huawei product after TechInsights discovery, source says

Exclusive-TSMC told us about a chip in a Huawei product after TechInsights discovery, source says

 


By Karen Freifeld

(Reuters) – Taiwan Semiconductor Manufacturing Company informed the United States that one of its chips was found in a Huawei product after technology research firm TechInsights took apart the product, a person familiar with the matter said, revealing a possible violation of export restrictions on the product. Chinese company.

The teardown involved Huawei's Ascend 910B, another source said. The 910B is considered the most advanced AI chip available from a Chinese company. The first source did not identify the item, but said the TSMC chip was part of a multi-chip system.

TechInsights informed TSMC about the chip before publishing its findings in a report, the person said, prompting the Taiwanese company to notify the U.S. Commerce Department a few weeks ago.

The revelation could show how difficult enforcing export controls can be both for companies making highly sought-after products and for regulators. At the same time, this also shows Huawei's constant need for the most sophisticated chips.

TSMC said in a statement Monday that it had proactively contacted the Commerce Department about the matter. It said it has not supplied chips to Huawei since mid-September 2020.

“We do not know if TSMC is under investigation at this time,” the company said.

Huawei was placed on a US trade restriction list in 2019 over national security concerns.

TechInsights, whose report has not yet been published, declined to comment.

Shenzhen-based Huawei said in a statement that it had not produced any chips through TSMC after the implementation of U.S. rules in 2020.

It's unclear how the chip got to Huawei. In 2019, the company launched its Ascend 910 series of chips. At the time, before export controls, the chips were produced by TSMC, two sources told Reuters earlier this year.

The Information and Financial Times reported that the United States was studying TSMC and Huawei.

The Commerce Department said in a statement that it was “aware of reports of potential violations of U.S. export controls” but could not say whether an investigation was underway.

A third source confirmed that TechInsights took apart a Huawei product and found what looked like a chip made by TSMC.

“We maintain a robust and comprehensive export system to monitor and ensure compliance,” TSMC said in its statement.

The Taiwanese government, which has implemented its own strict rules to prevent the production of advanced chips in China, has repeatedly said it will ensure that Taiwanese technology companies comply with U.S. rules.

The story continues

“We will have full communication with the company,” Taiwan's Economy Minister Kuo Jyh-huei told reporters in Taipei on Wednesday, without elaborating.

(Reporting by Karen Freifeld; additional reporting by Fanny Potkin in Singapore, Ben Blanchard in Taipei and David Kirton in Shenzhen, China; editing by Chris Sanders, Chizu Nomiyama, Rod Nickel, David Gregorio and Richard Chang)

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2/ https://finance.yahoo.com/news/exclusive-tsmc-told-us-chip-152440238.html

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