Oct 23, V7N- Taiwan Semiconductor Manufacturing Company (TSMC) recently informed the U.S. Commerce Department that one of its chips was found in a Huawei product, specifically the Huawei Ascend 910B AI chip, according to sources familiar with the matter. This discovery was made by tech research firm TechInsights during a teardown of the product, which raised concerns about a potential violation of U.S. export restrictions on Huawei.

TSMC has not supplied chips to Huawei since mid-September 2020 due to U.S. trade restrictions, and it proactively reported the matter to the Commerce Department. While TSMC stated it is not under investigation at this time, the incident highlights the challenges of enforcing export controls, especially for advanced technology products like AI chips.

The U.S. placed Huawei on a trade-restriction list in 2019 due to national security concerns. The discovery of a TSMC chip in a Huawei product suggests the company may still be acquiring sophisticated technology despite these controls. How the chip ended up in the product remains unclear, but it could be linked to prior production before the restrictions took effect.

Both the U.S. government and Taiwan have strict regulations to prevent advanced chip technology from being used in restricted markets like China. Taiwan's government confirmed that it will engage with TSMC to ensure compliance with U.S. rules. The U.S. Commerce Department has acknowledged awareness of the situation but has not confirmed any ongoing investigations.

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