The Taiwan Semiconductor Manufacturing Company (TSMC) has clarified its position regarding allegations of shipping artificial intelligence processors to Huawei, a prominent Chinese technology firm. Reports, particularly from Semi Analysis, claimed that Huawei succeeded in obtaining processors from TSMC. However, TSMC stated that it has not fulfilled any orders from Huawei since September 2020. This follows a US government restriction from May 2020, which prohibited the export of advanced chips to Huawei, allowing a grace period for existing orders until mid-September of the same year.
Communication with US Government and Compliance Measures
Concerns over China’s access to advanced AI chips intensified earlier in the year when AI models developed by DeepSeek reportedly matched the performance of their Western equivalents. It was suggested that DeepSeek had gained access to specialty NVIDIA H20 AI GPUs, which the US has since restricted. Concurrently, a report from the Center of Strategic and International Studies (CSIS) indicated that Huawei could produce over half a million advanced Ascend AI chips despite the US sanctions.
Further investigation by tech analysis firm Tech Insights, as reported by Semi Analysis, indicated that Huawei’s Ascend chips had been manufactured by Huawei itself. The CSIS report emphasized that Huawei secured the necessary dies for chip production before the sanctions were imposed, leading to the conclusion that TSMC’s actions complied with US regulations.
Following the allegations, TSMC reaffirmed its commitment to adhere to all relevant laws concerning its products. The production of the latest AI chips involves advanced manufacturing processes, such as the use of 7-nanometer and 5-nanometer technologies, while TSMC’s leading-edge process currently stands at 3-nanometers, developed for low-power applications like smartphone processors.
TSMC has committed to addressing any suspicious orders proactively, including conducting due diligence and notifying the proper authorities. The firm confirmed its ongoing dialogue with the US Commerce Department to maintain compliance and ensure transparency in its operations.