https://www.reuters.com/technology/tsmc-told-us-chip-huawei-device-after-techinsights-finding-source-says-2024-10-22/

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  * Technology

Exclusive: TSMC told US of chip in Huawei product after TechInsights
finding, source says

By Karen Freifeld
October 22, 20248:18 PM UTCUpdated ago

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Illustration shows TSMC logo
The company logo for Taiwan Semiconductor Manufacturing Company is
displayed on a screen on the floor of the New York Stock Exchange
(NYSE)
Item 1 of 2 Taiwan Semiconductor Manufacturing Company (TSMC) logo is
seen near computer motherboard in this illustration taken January 8,
2024. REUTERS/Dado Ruvic/Illustration/File Photo
[1/2]Taiwan Semiconductor Manufacturing Company (TSMC) logo is seen
near computer motherboard in this illustration taken January 8, 2024.
REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights,
opens new tab
Oct 22 (Reuters) - Taiwan Semiconductor Manufacturing Company
(2330.TW), opens new tab notified the U.S. that one of its chips had
been found in a Huawei product after tech research firm TechInsights
took apart the product, a person familiar with the matter said,
revealing a possible violation of export restrictions on the Chinese
company.
The teardown was of Huawei's Ascend 910B, another source said. The
910B is viewed as most advanced AI chip available from a Chinese
company. The first source would not identify the item, but said the
TSMC chip was one within a multi-chip system.
TechInsights informed TSMC of the chip before publishing its findings
in a report, the person said, prompting the Taiwanese firm to notify
the U.S. Commerce Department a couple of weeks ago.
The revelation could show how difficult enforcing export controls can
be for both companies making highly desired products and regulators.
At the same time, it also shows Huawei's sustained need for the most
sophisticated chips.
TSMC said in a statement on Monday that it had proactively reached
out to the Commerce Department regarding the matter. It said it had
not supplied chips to Huawei since mid-September 2020.
"We are not aware of TSMC being the subject of any investigation at
this time," the company said.
Huawei was placed on a U.S. trade-restriction list in 2019 for
national security purposes.
TechInsights, whose report has yet to be published, declined to
comment.
Shenzhen-based Huawei did not immediately respond to a request for
comment.
It is unclear how the chip made its way to Huawei. In 2019, the
company released its Ascend 910 chip series. At the time, prior to
export controls, the chips were produced by TSMC, two sources told
Reuters earlier this year.
The Information and the Financial Times have reported that the U.S.
is looking into TSMC and Huawei.
The Commerce Department said in a statement it is "aware of reporting
alleging potential violations of U.S. export controls," but cannot
comment on whether any investigation is ongoing.
A third source confirmed TechInsights did a teardown of a Huawei
product and found what looks like a chip manufactured by TSMC.
"We maintain a robust and comprehensive export system for monitoring
and ensuring compliance," TSMC said in its statement.

Sign up here.

Reporting by Karen Freifeld; additional reporting by Fanny Potkin in
Singapore; editing by Chris Sanders, Chizu Nomiyama, Rod Nickel,
David Gregorio and Richard Chang

Our Standards: The Thomson Reuters Trust Principles., opens new tab

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