Huawei may have tried to skirt chip export controls, TSMC tells authorities
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Taiwan Semiconductor Manufacturing Company has reportedly informed the U.S. government about a potential attempt by Huawei to have it make artificial intelligence chips for the sanctioned Chinese tech giant.
The Taiwanese chipmaker said in a statement shared with the Financial Times that it “proactively communicated with the U.S. commerce department regarding” a report by The Information last week that it was under investigation for making AI or smartphone chips for Huawei, which would be a violation of U.S. export controls.
“We are not aware of TSMC (TSM-1.87%) being the subject of any investigation at this time,” TSMC said in the statement, adding that it “is a law-abiding company and we are committed to complying with all applicable rules and regulations, including applicable export controls.”
The chipmaker said it has not supplied chips to Huawei “since mid-September 2020.”
“If we have any reason to believe there are potential issues, we will take prompt action to ensure compliance, including conducting investigations and proactively communicating with relevant parties including customers and regulatory authorities,” TSMC said in the statement.
Neither TSMC, Huawei, nor the Department of Commerce immediately responded to a request for comment from Quartz.
TSMC informed the Commerce Department about a customer placing orders for a chip resembling the Ascend 910B processor developed by Huawei, the Financial Times reported, citing unnamed people familiar with the matter. After seeing the order, a person close to TSMC told the Financial Times that the company also spoke to the customer related to the order, and that any investigation would be “related to” the Taiwanese chipmaker, but that it wouldn’t be the focus.
The chipmaker reportedly made the precursor to Huawei’s chip before U.S. sanctions were placed on the Chinese tech company.
A Commerce Department spokesperson told the Financial Times that its Bureau of Industry and Security is aware of The Information’s report, and that it “cannot comment on whether any investigation is ongoing.”
TSMC’s U.S.-listed shares were down around 1.5% during mid-day trading on Tuesday.
