Taiwan Semiconductor Manufacturing Company (TSMC) has suspended its chip supply to China-based chip designer Shafgo, after discovering that its chips were being used in Huawei’s AI processors, sources told Reuters.
According to the report, Shafgo had placed an order with TSMC for chips, one of which matched Huawei’s Ascend 910B processor. The Biden administration has imposed restrictions to prevent Huawei from accessing U.S. technology in the interest of national security.
However, Reuters noted that it was unable to verify how TSMC’s chips ended up in Huawei’s product.
In a statement on its website, Shafgo asserted that it adheres to all regulations and does not have any business relationship with Huawei. Shafgo, which has ties to cryptocurrency mining hardware manufacturer Bitmain, has already submitted a detailed investigation report to TSMC to demonstrate its lack of involvement with Huawei.
No comments have been received from TSMC or Huawei on the matter, according to Reuters.