TSMC warns US authorities about possible violation of export regulations by Huawei, for the production of its AI chips.

TSMC, the world’s largest semiconductor manufacturer, has alerted US authorities to a possible violation of export restrictions by Huawei. This happened after a customer ordered a chip similar to Huawei’s Ascend 910B. This AI processor is specifically designed for large language models, writes The Register.

What did Huawei do wrong?

TSMC suspected that Huawei was trying to circumvent export regulations through an intermediary. These US restrictions prohibit the export of advanced AI chips to China. These were introduced out of fear of military use of this technology. The US Department of Commerce has now opened an investigation into possible deliveries of AI chips to Huawei that would violate export laws.

TSMC emphasizes that the company has been strictly adhering to the rules since September 2020 and no longer supplies chips to China. A few years ago, the United States restricted the export of advanced chips using American technology to China because of concerns that the technology could be used for military purposes. TSMC produces 90 percent of these chips and therefore raised the alarm after the order was placed. The US government remains concerned about the possibility that Huawei equipment could be used by Beijing for espionage purposes.

The US also imposed restrictions on Japan exporting chips to China. These restrictions are causing the company’s profits to collapse, even though Huawei is China’s leading technology company.