Chipmaker TSMC Alerts US to Potential Huawei Export Control Evasion
Taiwan Semiconductor Manufacturing Company (TSMC) has notified the US government of a possible attempt by Chinese tech giant Huawei to sidestep export controls. The restrictions, introduced two years ago, aim to limit the Chinese military’s access to advanced AI chips.
A Complex Web of Export Controls
The US government has been ramping up its use of export controls to prevent Chinese companies from acquiring, designing, or manufacturing cutting-edge semiconductors. A key aspect of these controls is a rule prohibiting global chip manufacturers from using US technology or equipment to produce chips intended for Huawei or its products.
TSMC’s Cautionary Move
TSMC’s decision to inform the US Commerce Department was prompted by a customer’s order for a chip similar to Huawei’s Ascend 910B, a processor designed for large language model training. While the company has not supplied chips to Huawei since mid-September 2020, it is taking a cautious approach to avoid any potential repercussions.
A Growing Tech Rivalry
The escalating tensions between the US and China over technology are epitomized by the rivalry between Huawei and Washington. As the US continues to tighten its export controls, Chinese companies are seeking ways to circumvent these restrictions and maintain their competitive edge.
Market Reaction
TSMC’s US-listed shares took a hit, falling 1.5% following the news. The company, however, maintains that it is not aware of any ongoing investigation and is committed to complying with all relevant regulations.
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