The Taiwanese chip manufacturer TSMC has informed the US government about a possible attempt to circumvent US export controls. The company received an order for a chip similar to the Huawei Ascend 910B—a processor for training large language models.
TSMC, the world's largest contract manufacturer for semiconductors, stated that it had proactively informed the U.S. Department of Commerce about the suspicious order. "We have proactively communicated with the U.S. Department of Commerce on this matter and are not aware of any ongoing investigation against TSMC," it said in a statement sent via email.
Two people familiar with the situation reported that TSMC alerted the ministry after a customer ordered a chip similar to Huawei's Ascend 910B. TSMC had produced the predecessor of this chip before the US sanctions came into effect.
The USA has tightened export controls in recent years to make it more difficult for Chinese companies to access advanced semiconductors. Huawei is in focus as the technology company is considered a key player in the technological supremacy competition between the USA and China.
A key instrument of these controls is the ban on chip manufacturers worldwide from using US technology or equipment to produce chips for Huawei. Since nearly all semiconductor plants use specialized US devices, this should exclude Huawei from procuring from companies like TSMC. TSMC holds over 90 percent of the market for the most advanced chips.
TSMC is a law-abiding company and is committed to complying with all applicable rules and regulations, including export controls," the company emphasized. "Since mid-September 2020, we have ceased all shipments to Huawei in accordance with regulatory requirements.
A source stated that TSMC had spoken with both the affected customer and the US Department of Commerce after receiving the questionable order. The agency's investigation pertains to the incident, but TSMC is not the target of the investigations.
A spokesperson for the Ministry of Commerce confirmed that the Bureau of Industry and Security has been informed about reports of possible violations of US export controls. "We cannot comment on whether an investigation is underway. The BIS is determined to ensure compliance with the strict controls we have introduced in connection with China's acquisition of advanced semiconductors.
TSMC emphasized that it has a "robust and comprehensive export system" to ensure compliance. "If we have reason to believe that potential issues exist, we promptly take action to ensure compliance, including investigations and proactive communication with relevant parties such as customers and regulatory authorities.
